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P14.1 (LO 2), AP Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the
P14.1 (LO 2), AP 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 costs and other expense data are as follows. Rent on factory equipment Insurance on factory building $11,000 1,500 Raw materials used (plastics, polystyrene, etc.) 75,000 Utility costs for factory 900 Supplies used for general office 300 3 Wages for assembly-line workers 58,000 Depreciation on office equipment 800 7 Miscellaneous materials used (glue, thread, etc.) 1,100 Factory manager's salary 5,700 12 Property taxes on factory building 400 -16 Advertising for helmets 14,000 Sales commissions 10,000 -23 Depreciation on factory building 1,500 4-311 4-31) Instructions a. Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Enter each cost item on une anche lacing the dollar amount under the sunniste handing Total the dollar Instructions 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 a. Prepare an answer sheet with the following column headings. Product Costs Cost Item Direct Materials Direct Labor Manufacturing Overhead Period Costs Enter each cost item on your answer sheet, placing the dollar amount under the appropriate heading. Total the dollar amounts in each of the columns. a. DM $75,000 DL $58,000 MO $22,100 PC $25,100 b. Compute the cost to produce one helmet. Classify manufacturine costs into different catenaries and combate the unit enst
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