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Larkspur Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders
Larkspur Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Larkspur's monthly manufacturing costs and other expense data are as follows. Rent on factory equipment $12,000 Insurance on factory building 1,810 Raw materials used (plastics, polystyrene, etc.) 80,600 Utility costs for factory 910 Supplies used for general office 380 Wages for assembly-line workers 67,900 Depreciation on office equipment 870 Miscellaneous materials used (glue, thread, etc.) 1.500 Factory manager's salary 6,600 Prierty taxes on factory building 450 Advertising for helmets 14,100 Sales commissions 10.410 Depreciation on factory building 1630 (a) Enter each cost item on your answer sheet, placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns. Cost Item Rent on factory equipment Insurance on factory building Raw materials used (plastics, polystyrene, etc) Utility costs for factory Supplies for general office Wages for assembly-line workers Depreciation on office.o Direct Materials Product Costs Direct Labor 00000
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