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Bjerg Company specializes in manufacturing an exclusive model of bicycle helmet. The model is well accepted by the consumers and the company has sufficient orders to keep the factory production at 10,000 helmets per month (80% of its full capacity). Bjerg's monthly manufacturing cost and other expenditure data are as shown.

Rent on factory equipment $ 7,000

Insurance on factory building 1,500

Raw materials (plastics, polystyrene and so on) 75,000

Utility costs for factory 900

Supplies for general office 300

Wages for assembly line workers 43,000

Depreciation on office equipment 800

Miscellaneous materials (glue, thread and so on) 1,100

Factory manager's salary 5,700

Property taxes on factory building 400

Advertising for helmets 14,000

Sales commissions 7,000

Depreciation on factory building 1,500


a) Make an answer sheet. Enter each cost item on your answer sheet, placing the dollar amount under the suitable headings. Total the dollar amounts in each of the columns. (If answer is zero, please enter 0; don't leave any fields blank.)

b) find out the cost to produce one helmet.

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