The following information applies to the questions displayed below. Listed here
ID: 2526850 • Letter: T
Question
The following information applies to the questions displayed below. Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $529 each. Costs 1. Plastic for casing-$18,000 2. Wages of assembly workers-$82,000. 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$33,000 5. Drum stands (1,000 stands purchased)-$37,000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$205,000 8. Annual flat fee for factory maintenance service-$15,000 9. Sales commissions-$24 per unit 10. Machinery depreciation, straight-line-$47,000Explanation / Answer
Answer:
1
Cost by Behaviour
Cost by Function
variable
Fixed
Product
Period
1 Plastic for casing
18000
18000
2. Wages of assembly workers
82000
82000
3. Property taxes on factory
5000
5000
4. Accounting staff salarie
33000
33000
5. Drum stands (1,000 stands purchased
37000
37000
6. Rent cost of equipment for sales staf
24000
24000
7. Upper management salaries
205000
205000
8. Annual flat fee for factory maintenance servic
15000
15000
9. Sales commissions—
24000
24000
10. Deprication
47000
47000
2
Calculation of the manufacturing cost per drum
For the year ended Dec-31,2015
Total Cost
Per unit
Plastic for casing
18000
18
Wages of assembly workers
82000
82
Drum stands (1,000 stands purchased
37000
37
Total variable production cost
137000
137
Fixed production Cost
Property taxes on factory
5000
5
Annual flat fee for factory maintenance servic
15000
15
Deprication
47000
47
Total Fixed production cost
67000
67
Total production cost
204000
204
Cost by Behaviour
Cost by Function
variable
Fixed
Product
Period
1 Plastic for casing
18000
18000
2. Wages of assembly workers
82000
82000
3. Property taxes on factory
5000
5000
4. Accounting staff salarie
33000
33000
5. Drum stands (1,000 stands purchased
37000
37000
6. Rent cost of equipment for sales staf
24000
24000
7. Upper management salaries
205000
205000
8. Annual flat fee for factory maintenance servic
15000
15000
9. Sales commissions—
24000
24000
10. Deprication
47000
47000
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.