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nt NEXT Problem 14-1A (Part Level Submission) Ohno Company specializes in manufa

ID: 2342342 • Letter: N

Question

nt NEXT Problem 14-1A (Part Level Submission) 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 Insurance on factory building $11,400 2,460 80,000 970 360 59,000 910 1,400 6,700 500 14,500 10,790 1,600 Raw materials (plastics, polystyrene, etc.) Utility costs for factory Supplies for general office Wages for assembly line workers Depreciation on office equipment Miscellaneous materials (glue, thread, etc.) Factory manager's salary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building Your answer is correct. Prepare an answer sheet with the following column headings

Explanation / Answer

Answer to Part b.

Product Cost per Helmet = Total Production Cost / No. of Helmets produced
Total Production Cost = Direct Materials + Direct Labor + Manufacturing Overhead
Total Production Cost = $80,000 + $59,000 + $25,030
Total Production Cost = $164,030

Product Cost per Helmet = 164,030 / 10,000
Product Cost per Helmet = $16.40