Question 4

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). Ohnos monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment		$11,600
Insurance on factory building		2,500
Raw materials (plastics, polystyrene, etc.)		79,700
Utility costs for factory		900
Supplies for general office		300
Wages for assembly line workers		63,700
Depreciation on office equipment		800
Miscellaneous materials (glue, thread, etc.)		1,200
Factory managers salary		6,400
Property taxes on factory building		500
Advertising for helmets		14,500
Sales commissions		10,600
Depreciation on factory building		1,600

(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.

		Product Costs
Cost Item		Direct Materials		Direct Labor		Manufacturing Overhead		Period Costs
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 managers salary
Property taxes on factory building
Advertising for helmets
Sales commissions
Depreciation on factory building

Type or paste question here