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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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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
$1,600
Insurance on factory building
2,500
Raw materials (plastics, polystyrene, etc.)
79,700
Utility costs for factory
900
Supplies for general office
300
Wages for assembly line workers
63,700
Depreciation on office equipment
800
Miscellaneous materials (glue, thread, etc)
1,200
Factory manager's salary
6,400
Property taxes on factory building
500
Advertising for helmets
14,500
Sales commissions
10,600
Depreciation on factory building
1,600
(a)
Transcribed Image Text: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 $1,600 Insurance on factory building 2,500 Raw materials (plastics, polystyrene, etc.) 79,700 Utility costs for factory 900 Supplies for general office 300 Wages for assembly line workers 63,700 Depreciation on office equipment 800 Miscellaneous materials (glue, thread, etc) 1,200 Factory manager's salary 6,400 Property taxes on factory building 500 Advertising for helmets 14,500 Sales commissions 10,600 Depreciation on factory building 1,600 (a)
Direct
Direct
Manufacti
Cost Item
Materials
Labor
Overhe
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'ssalary
Property taxes on factory building
Advertising for helmets
Sales commissions
Depreciation on factory building
Transcribed Image Text:Direct Direct Manufacti Cost Item Materials Labor Overhe 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'ssalary Property taxes on factory building Advertising for helmets Sales commissions Depreciation on factory building
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