Problem 14-01A Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model
Problem 14-01A 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 $11,300 Insurance on factory building Raw materials (plastics, polystyrene, etc.) 2,400 83,200 Utility costs for factory 1,000 Supplies for general office Wages for assembly line workers 400 58,200 900 Depreciation on office equipment Miscellaneous materials (glue, thread, etc.) 1,400 6,200 Factory manager's salary Property taxes on factory building Advertising for helmets 400 14,700 10,600 Sales commissions 1,700 Depreciation on factory building 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 Labor Manufacturing Period Cost Item Overhead Costs Rent on factory equipment Insurance on factory bulding Raw materials Utility costs for factory Supples for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materals Factory manager's salary Property taxes on factory bulding Advertising for helmets Sales commissions Depreciation on factory building Compute the cost to produce one helmet. (Round answer to 2 decimal places, Production cost per helmet $4
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