(The following information applies to the questions displayed below. Listed here
ID: 2510447 • Letter: #
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(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 $494 each. osts 1. Plastic for casing-$17,000 2. Wages of assembly workers-$84,000 3. Property taxes on factory-$6,000 4. Accounting staff salaries-$34,000 5. Drum stands (1,000 stands purchased) $29,000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$185,000 8. Annual flat fee for factory maintenance service $18,000 9. Sales commissions-$20 per unit 10. Machinery depreciation, straight-line $36,000 oblem 1-1A Part 2 Calculate the manufacturing cost per drum set TrueBeatExplanation / Answer
TrueBeat Calculation of Manufacturing cost per Drum Set For Year Ended December 31, 2017 Item Total cost Per unit cost Variable production cost Plastic for casing $ 17,000 $17,000/1,000 = $17 wages of assembly workers $ 84,000 $84,000/1,000 = $84 Drum stands $ 29,000 $29,000/1,000 = $29 Total variable production cost $ 130,000 $ 130 Fixed production costs Property taxes on factory $ 6,000 $6,000/1,000 = $6 Annual fee for factory maintenance $ 18,000 $18,000/1,000 = $18 Machinery depreciation $ 36,000 $36,000/1,000 = $36 Total fixed manufacturing cost $ 60,000 $ 60 Total production costs $130,000+$60,000 = $190,000 $130+$60 = $190
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