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Ohno Company specializes in manufacturing a unique model of bicycle helmets. The model is well accepted by consumers, and the company has enough orders to

Ohno Company specializes in manufacturing a unique model of bicycle helmets. 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 full capacity). Ohno's monthly manufacturing cost and other expense data are as follows:

Rent on factory equipment $11,000
Insurance on factory building 1,500
Raw materials (plastics, polystyrene, etc.) 75,000
Utility costs for factory 900
Supplies for general office 300
Wages for assembly line workers 58,000
Depreciation on office equipment 800
Miscellaneous materials (Glue, thread, etc.) 1,100
Factory manager's salary 5,700
Property taxes on factory building 400
Advertising for helmets 14,000
Sales commissions 10,000
Depreciation on factory building 1,500

Instructions: Using the template below, enter each cost item placing the dollar amount under the appropriate headings. Total the dollar amounts in each of the columns.

Product Costs
Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs
Rent on Factory Equipment Choose...1,10011,0004001,50075,0005,70058,000
Insurance on Factory Building Choose...1,10011,0004001,50075,0005,70058,000
Raw Materials (Plastics, Polystyrene) Choose...1,10011,0004001,50075,0005,70058,000
Supplies for General Office Choose...80014,00030010,0001,500
Wages for Assemly Line Workers Choose...1,10011,0004001,50075,0005,70058,000
Depreciation on Office Equipment Choose...80014,00030010,0001,500
Miscellaneous Materials (Glue, Thread, etc.) Choose...1,10011,0004001,50075,0005,70058,000
Factory Manager's Salary Choose...1,10011,0004001,50075,0005,70058,000
Property Taxes on Factory Building Choose...1,10011,0004001,50075,0005,70058,000
Advertising for helmets Choose...80014,00030010,0001,500
Sales Commissions Choose...80014,00030010,0001,500
Depreciation on Factory Building Choose...80014,00030010,0001,500
Choose...58,00021,20025,10075,000 Choose...58,00021,20025,10075,000 Choose...58,00021,20025,10075,000 Choose...58,00021,20025,10075,000

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