P19-1A Bjerg Company specializes in manufacturing a unique model of bicycle helm
ID: 2350991 • Letter: P
Question
P19-1ABjerg 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). Bjerg's monthly manufacturing cost and other expense data are as follows.
Rent on factory equipment $ 7,000
Insurance on factory building 1,500
Raw materials (plastics, polystyrene, etc.) 75,000
Utility costs for factory 900
Supplies for general office 300
Wages for assembly line workers 43,000
Depreciation on office equipment 800
Miscellaneous materials (glue, thread, etc.) 1,100
Factory manager's salary 5,700
Property taxes on factory building 400
Advertising for helmets 14,000
Sales commissions 7,000
Depreciation on factory building 1,500
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. (If answer is zero, please enter 0. Do not leave any fields blank.)
Direct Materials
Direct Labor product costs
Manufacturing Overhead
Cost Item
Direct Mat direct labor Manufacturing Overhead Period cost
Period Cost
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
total $ $ $ $
Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 10.50.)
$
Explanation / Answer
total cost = fixed cost+ variable cost fixed cost =61100 Total cost =158200$ Production cost =137200/10000= 13.72$ per helmet cheers :)
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