Giant Bike Co. Ltd.produces many different models of bicycles. Assume that the market has responded enthusiastically to a new model, the Jaguar. As a result, the company has established a separate manufacturing facility to produce these bicycles. The company produces 1,000 bicycles per month. Giant”s monthly manufacturing costs and other data are as follows.

1. Rent on manufacturing equipment (lease cost)


2. Insurance on manufacturing building


3. Raw materials (frames, tires, etc.)


4. Utility costs for manufacturing facility


5. Supplies for administrative office


6. Wages for assembly line workers in manufacturing facility


7. Depreciation on office equipment


8. Miscellaneous manufacturing materials (lubricants, solders, etc.)


9. Property taxes on manufacturing building


10. Manufacturing supervisor”s salary


11. Advertising for bicycles


12. Sales commissions


13. Depreciation on manufacturing building



Compute total manufacturing costs for the month.