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Question: yesyes company specializes in manufacturing a unique model of bicycle...

Question details

YesYes 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). YesYes's monthly manufacturing cost and other expense data are as follows.

Rent on factory equipment $ 11,800
Insurance on factory building 2,400
Raw materials (plastics, polystyrene, etc.) 79,400
Utility costs for factory 1,000
Supplies for general office 400
Wages for assembly line workers 62,600
Depreciation on office equipment 900
Miscellaneous materials (glue, thread, etc.) 1,300
Factory manager’s salary 6,500
Property taxes on factory building 500
Advertising for helmets 14,300
Sales commissions 10,900
Depreciation on factory building 1,700

(a)

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.

Product Costs


Cost Item

Direct
Materials

Direct
Labor

Manufacturing
Overhead

Period
Costs

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 buildin
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