Gradebook ORION signment ONBACK NEXT ES Question 1 g a ultque model of bicycle h
ID: 2520795 • Letter: G
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Gradebook ORION signment ONBACK NEXT ES Question 1 g a ultque model of bicycle helmet. The model is well accepted by consumers, and the company has en keep the factory production at 10,000 helmets t 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 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 $11,200 1,650 84,900 930 350 58,300 840 1,230 5,800 480 14,400 10,120 1,660 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. Direct Labor Manufacturing Overhead Costs Cost Item n 4.24.6.2 acBook PrOExplanation / Answer
Cost Item Direct Material Direct Labour Manufacturing overhead Period Cost Rent on Factory Equipment 11200 Insurance on Factory Building 1650 Raw Materials 84900 Utility cost for factory 930 Supplies for general office 350 Wages for assembly line workers 58300 Depreciation on office Equipment 840 Miscellaneous Materials 1230 Factory Managers Salary 5800 Property Taxes on Factory Building 480 Advertising for helmets 14400 Sales Commissions 10120 Depreciation on Factory Building 1660 Total 84900 58300 21300 27360 10000 helmets are at 80% capacity so at 100% no. of helmets will be 12500 Period cost would be allocated on 100% capacity 2.1888 ( 27360/12500) All other cost would be allocated on actual production 16.45 (84900+58300+21300)/10000 Production cost per helmet 18.6388 (2.1888+16.45)
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