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Lott 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). Lott's monthly manufacturing cost and other expense data are as follows. Rent on factory equipment $9,590 Insurance on factory building 2,580 Raw materials (plastics, polystyrene, etc.) 79,000 Utility costs for factory 960 Supplies for general office 390 Wages for assembly line workers 59,700 Depreciation on office equipment 820 Miscellaneous materials (glue, thread, etc.) 1,200 Factory manager's salary 5,890 Property taxes on factory building 450 Advertising for helmets 14,230 Sales commissions 10,100 Depreciation on factory building 1,700 a) 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.
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