and the company has enough or e s to keep the actory product

and the company has enough or e s to keep the actory production at 10 000 hal ets par month S0% of its ull capacity Shaf elds month y Shaffiald Company speciali2as in manufacturing a unique mode of bic de helmet. The moda is all acceptad by consum e manufacturing cost and other axpanse data are as follows. $12,500 1.740 80,500 Rent on factory equipment Insurance on factory building Raw materias used (plastics, polyatyrene, etc.) utility costs for factory Supplies for aeneral office Wages for assembly line workers 220 65.700 830 1,400 6,600 Miscallaneous matarials (glua, throad, atc.) Factory managers salary Property taxes on factory building Advertising for helmets Sales commiss ons Depreciation on factory building 14,600 1,640 Prepere an anewer sheet with the following column headings Enter each cost item on your answer sheet, placing the dollar amount under the appropriste headings. Total the dollar amounts in each of the columns Product Costs Direct Direct Manufacturing Period Cost Itern Rent on fectory equipment Insuranca on factory building Rawr msteria: Utility costs for factory Supplies for general office Wagas for aszambly line workars Deprecistion on office equipment Miscelleneous materials Factery manager\'s salary Property taocas on factory building Advertising for helmets Sales commissions Depreciation on factory building

Solution

Cost item Direct Material Direct Labor Manufacturing Over head Period Costs Rent on factory equipment 12500 Insurance on factory building 1740 Raw materials 80500 Utility costs for factory 980 Supplies for general office 320 Wages for assembly line workers 65700 Depreciation on office equipment 830 Miscellaneous materials 1400 Factory manager’s salary 6600 Property taxes on factory building 440 Advertising for helmets 14600 Sales commissions 10950 Depreciation on factory building 1640 80500 65700 25300 26700