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2 https://newconnect.mheducation.com/flow/connect html Saved Required informatio

ID: 2508611 • Letter: 2

Question

2 https://newconnect.mheducation.com/flow/connect html Saved Required information [The following information applies to the questions displayed below Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $525 each. Costs 1. Plastic for casing-$19,080 2. Wages of assembly workers-$86,000 3. Property taxes on factory-$6,009 4. Accounting staff salaries-536,000 S. Drum stands (1,008 stands purchased)-$35,880 6. Rent cost of equipment for sales staff-$36,eee 7. Upper management salaries-$190,00e 8. Annual flat fee for factory maintenance service-$16,000 9. sales commissions-$24 per unit 10. Machinery depreciation, straight-line-$43,e0e Classity each cost and its amount as (o) either variable or fixed and (tb) either product or period.(The first cost is completed a ample.) equired: Cost by Behavior t by Costs $19,000 $ 19000 1 Plastic for casing 2 Wages of assembily workers 3 Property taxes on factory 4 Accounting staff salarnies 5 Drun stands 11 12 of 28 ill Next e B o search

Explanation / Answer

cost by behaviour Cost by function Variable Fixed Variable Fixed 1) Plastic for casing 19,000 19,000 2) Wages of Asssembly workers 86,000 86,000 3) property taxes on Factory 6,000 6,000 4) Accounting staff salaries 36,000 36,000 5) Drum stands 35,000 35,000 6) Rent cost of Equipment for sales staff 36,000 36,000 7) upper mangagement salaries 190,000 190,000 8) annual flat fee paid for maintenance service on factory equipment 16,000 16,000 9) Sales commissions 24,000 24,000 10) machinery depreciation,straight-line 43,000 43,000

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