Swifty 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). Swifty’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,100 Insurance on factory building 1,800 Raw materials (plastics, polystyrene, etc.) 80,600 Utility costs for factory 900 Supplies for general office 400 Wages for assembly line workers 67,900 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,500 Factory manager’s salary 6,600 Property taxes on factory building 500 Advertising for helmets 14,100 Sales commissions 10,400 Depreciation on factory building 1,600 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 building $ $ $ $
Swifty 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). Swifty’s monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $11,100 Insurance on factory building 1,800 Raw materials (plastics, polystyrene, etc.) 80,600 Utility costs for factory 900 Supplies for general office 400 Wages for assembly line workers 67,900 Depreciation on office equipment 900 Miscellaneous materials (glue, thread, etc.) 1,500 Factory manager’s salary 6,600 Property taxes on factory building 500 Advertising for helmets 14,100 Sales commissions 10,400 Depreciation on factory building 1,600 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 building $ $ $ $
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 7CE: Jean and Tom Perritz own and manage Happy Home Helpers. Inc. (HHH), a house-cleaning service. Each...
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Swifty 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). Swifty’s monthly
Rent on factory equipment | $11,100 | |
Insurance on factory building | 1,800 | |
Raw materials (plastics, polystyrene, etc.) | 80,600 | |
Utility costs for factory | 900 | |
Supplies for general office | 400 | |
Wages for assembly line workers | 67,900 | |
Depreciation on office equipment | 900 | |
Miscellaneous materials (glue, thread, etc.) | 1,500 | |
Factory manager’s salary | 6,600 | |
Property taxes on factory building | 500 | |
Advertising for helmets | 14,100 | |
Sales commissions | 10,400 | |
Depreciation on factory building | 1,600 |
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
|
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Cost Item |
Direct
Materials |
Direct
Labor |
Manufacturing
Overhead |
Period
Costs |
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Rent on factory equipment |
$
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$
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$
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$
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Insurance on factory building |
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Raw materials |
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Utility costs for factory |
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Supplies for general office |
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Wages for assembly line workers |
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Depreciation on office equipment |
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Miscellaneous materials |
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Factory manager’s salary |
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Property taxes on factory building |
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Advertising for helmets |
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Sales commissions |
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Depreciation on factory building |
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$
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$
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$
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$
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