Question

Monte 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 ten thousand helmets per month which is 80% of its full capacity Monty's monthly manufacturing cost and other expense data are as follows rent on Factory equipment $12,000, Insurance on Factory building $2,330 ,raw materials used such as plastic $80,500 ,utility cost for factory $990, supplies for general office $330, wages for assembly line workers $67,000, depreciation on office equipment $840, miscellaneous materials such as glue and thread $1,240, Factory manager salary $6,600, property taxes on Factory building 490 dollars, advertising for $14500 sales commissions $10,540 ,and depreciation on Factory building $1,650, prepare an answer sheet with the following column headings cost item direct materials direct labor manufacturing overhead. Cost also compute the cost to produce one helmet

Answer 1