Listed here are the total costs associated with the 2015 production of 1,000 dru

Question

Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat The drum sets sell for $469 each Costs 1. Plastic for casing-$22,000 2. Wages of assembly workers-$91,000. 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$40,000 5. Drum stands (1.000 stands purchased)-$27,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$145,000 8. Annual flat fee for factory maintenance service-$20,000 9. Sales commissions-$14 per unit 10. Machinery depreciation, straight-line-$40,000 value: 0.50 points Required: 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. 2. 3. Plastic for casing Wages of assembly workers Property taxes on factory Accounting staff salaries $22,000 $22,000 5. Drum stands 6. Rent cost of equipment for sales staff 7. Upper management salaries 8. Annual fat fee for factory maintenance service 9. Sales commissions 10. Machinery depreciation, straight-line

Explanation / Answer

Req 1: Cost of Behaviour Cost by Function Cost variable Fixed Product Period 1 Plastic of casting 22000 22000 2 Wages for Assembly workers 91000 91000 3 Prperty taxes 7000 7000 4 Accounting Staff salaries 40000 40000 5 Drum Stands 27000 27000 6 Rent cost off Selling equipment 36000 36000 7 Upper management salaries 145000 145000 8 Annual Flat fees for Maintenance 20000 20000 9 Sales Commission 14000 14000 10 Machinery Depreciation 40000 40000 TOTAL 154000 288000 207000 235000 Req 2: CALCULATION OF MANUFACTURING COST PER DRUM TOTAL PER UNIT COST COST Vvariable ProductionCost: Plastic of casting 22000 22 Wages for Assembly workers 91000 91 Drum stand 27000 27 Total Variable Production cost 140000 140 Fixed production Cost: Property tax 7000 7 Annual fees for factory maintenance 20000 20 Machinery depreciation 40000 40 Total fixed cost 67000 67 Total Manufacturing cost 207000 207

Related Questions

Navigate

• Browse (All)
• Browse L
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.