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Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the company has enough orders to
Ohno 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). Ohno's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,800 Insurance on factory building 1,900 Raw materials (plastics, polystyrene, etc.) 78,000 Utility costs for factory 930 Supplies for general office 330 Wages for assembly line workers 62,300 Depreciation on office equipment 830 Miscellaneous materials (glue, thread, etc.) 1,350 Factory manager's salary 6,700 Property taxes on factory building 430 Advertising for helmets 14,800 Sales commissions 11,020 Depreciation on factory building 1.700 Cost Item Rent on factory equipment Insurance on factory building Raw materials Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building Prepare an answer sheet with the following column headings. 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. Product Costs Direct Materials Direct Materials Direct Labor $ $ $ Manufacturing Overhead $ $ $ $ Period Costs Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.) Production cost per helmet $ 16.1
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