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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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