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Agler Company 1500

Price: $2.50

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 shown as follows:

Maintenance costs on factory building  $1,500
Factory managerÕs 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)  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

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

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

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 motorcycle helmet.

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