Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the com

Question

2 months ago

9

Ohno Company specializes in manufacturing a unique model of bicycle helmet. The model is well accepted by consumers, and the com

pany 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 $11,500 Insurance on factory building 1,780 Raw materials (plastics, polystyrene, etc.) 80,800 Utility costs for factory 920 Supplies for general office 320 Wages for assembly line workers 59,700 Depreciation on office equipment 830 Miscellaneous materials (glue, thread, etc.) 1,470 Factory manager’s salary 6,200 Property taxes on factory building 420 Advertising for helmets 14,900 Sales commissions 10,900 Depreciation on factory building 1,640 Prepare an answer sheet with the following column headings. 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 manager’s salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building $ $ $ $ Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)

Business

1 answer:

soldi70 [3.6K] · Answer 1 · 2026-03-06T02:46:17+03:00

Answer and Explanation:

Below is the layout for preparing the answer sheet;

Product Costs

Cost Item Direct Direct Manufacturing Period

Materials Labor Overhead Costs

Rent for factory equipment $11,500

Insurance for the factory structure $1,780

Raw materials total $80,800

Utility expenses for factory $920

Office supplies $320

Wages for assembly line personnel $59,700

Depreciation for office equipment $830

Miscellaneous materials sum $1,470

Salary for factory manager $6,200

Property taxes for factory facility $420

Advertising expenses for helmets $14,900

Sales commissions sum $10,900

Depreciation of the factory building $1,640

Total $80,800 $59,700 $23,930 $26,950

The production cost per helmet is

= Total production costs ÷ total helmets produced

= ($80,800 + $59,700 + $23,930) ÷ (10,000)

= ($164,430) ÷ (10,000)

= $16.44