Current Attempt in Progress
Larkspur 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). Larkspur's monthly
manufacturing costs and other expense data are as follows.
Rent on factory equipment
$12,000
Insurance on factory building
1,650
Raw materials used (plastics, polystyrene, etc.)
84,900
Utility costs for factory
930
Supplies used for general office
350
Wages for assembly-line workers
58,300
Depreciation on office equipment
840
Miscellaneous materials used (glue, thread, etc.)
1,230
Factory manager's salary
5,800
Property taxes on factory building
430
Advertising for helmets
14,400
Sales commissions
10,120
Depreciation on factory building
1,660
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.
Cost Item
Direct
Materials
Rent on factory equipment
Insurance on factory building
Raw materials used (plastics, polystyrene, etc.)
Utility costs for factory
Supplies for general office
Wages for assembly-line workers
Depreciation on office equipment
Miscellaneous materials used (glue, thread, etc.)
Factory manager's salary
Property taxes on factory building
Advertising for helmets
Sales commissions
Depreciation on factory building
eTextbook and Media
Product Costs
Direct
Labor
Compute the cost to produce one helmet. (Round answer to 2 decimal places, eg. 15.25.)
Production cost per helmet
$
