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 Raw materials (plastics, polystyrene, etc.) Utility costs for factory $11,800 2,100 84,100 1,000 400

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
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
$11,800
Production cost per helmet $
2,100
84,100
1,000
400
59,300
900
1,300
6.300
400
14,600
10,700
1,700
Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
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 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 $11,800 Production cost per helmet $ 2,100 84,100 1,000 400 59,300 900 1,300 6.300 400 14,600 10,700 1,700 Compute the cost to produce one helmet. (Round answer to 2 decimal places, e.g. 15.25.)
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