Agler Company specializes in manufacturing motorcycle helmets. The company has enough orders to keep the factory production at 1,000 motorcycle helmets per month. Agler€™s monthly manufacturing cost and other expense data are as follows.
Maintenance costs on factory building ......... $ 1,500
Factory manager€™s salary .............. 5,500
Advertising for helmets .............. 8,000
Sales commissions ................ 4,000
Depreciation on factory building .......... 700
Rent on factory equipment ............ 6,000
Insurance on factory building ........... 3,000
Raw materials (plastic, polystyrene, etc.) ....... 25,000
Utility costs for factory .............. 800
Supplies for general office ............ 200
Wages for assembly line workers .......... 54,000
Depreciation on office equipment ......... 500
Miscellaneous materials (glue, thread, etc.) ...... 2,000

Instructions
(a) Prepare an answer sheet with the following column headings.

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.
(b) Compute the cost to produce one motorcyclehelmet.

Transcribed Image Text:

Product Costs Cost Item Direct Materials Manufacturing Overhead Period Costs Labor