Rhie Helmets 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). Rhie’s monthly manufacturing cost and other expense data are as follows (amounts are in thousands).

Rent on factory equipment	W11,000
Insurance on factory building	1,500
Raw materials (plastics, polystyrene, etc.)	75,000
Utility costs for factory	900
Supplies for general office	300
Wages for assembly line workers	58,000
Depreciation on office equipment	800
Miscellaneous materials (glue, thread, etc.)	1,100
Factory manager’s salary	5,700
Property taxes on factory building	400
Advertising for helmets	14,000
Sales commissions	10,000
Depreciation on factory building	1,500

a. Prepare an answer sheet with the following column headings.

Enter each cost item on your answer sheet, placing the amount under the appropriate headings. Total the amounts in each of the columns.

b. Compute the cost to produce one helmet.

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Product Costs Cost Direct Direct Manufacturing Period Item Materials Labor Overhead Costs