[The following information applies to the questions displayed below.j Listed her
ID: 2563498 • Letter: #
Question
[The following information applies to the questions displayed below.j 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-$17,000 2. Wages of assembly workers-$91,000. 3. Property taxes on factory-$7,000 4. Accounting staff salaries- $31,000 5. Drum stands (1.000 stands purchased)-$29,000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$220.000 Annual flat fee for factory maintenance service- 8. $19,000 9. Sales commissions-$16 per unit 10. Machinery depreciation, straight-line-$40,000Explanation / Answer
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1
Plastic for casing
17000
17000
2
Wages of assembly workers
91,000
91,000
3
Property taxes on factory
7000
7,000
4
Accounting staff salaries
31,000
31,000
5
Drum stands
29,000
29,000
6
Rent cost of equipment for sales staff
24,000
24,000
7
Upper management salaries
2,20,000
2,20,000
8
Annual flat fee paid for maintenance service on factory equipment
19,000
19,000
9
Sales commissions
16,000
16,000
10
Machinery depreciation, straight-line
40,000
2
DrumBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2015
Item
Total cost
Per unit cost
Variable production costs
Plastic for casing
17000
17
Wages of assembly workers
91,000
91
Drum stands
29,000
29
Total variable production costs
1,37,000
137
Fixed production costs
Property taxes on factory
7,000
7
Annual fee for maintenance service
19,000
19
Machinery depreciation
40,000
40
Total fixed production costs
66,000
66
Total production cost
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1
Plastic for casing
17000
17000
2
Wages of assembly workers
91,000
91,000
3
Property taxes on factory
7000
7,000
4
Accounting staff salaries
31,000
31,000
5
Drum stands
29,000
29,000
6
Rent cost of equipment for sales staff
24,000
24,000
7
Upper management salaries
2,20,000
2,20,000
8
Annual flat fee paid for maintenance service on factory equipment
19,000
19,000
9
Sales commissions
16,000
16,000
10
Machinery depreciation, straight-line
40,000
400002
DrumBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2015
Item
Total cost
Per unit cost
Variable production costs
Plastic for casing
17000
17
Wages of assembly workers
91,000
91
Drum stands
29,000
29
Total variable production costs
1,37,000
137
Fixed production costs
Property taxes on factory
7,000
7
Annual fee for maintenance service
19,000
19
Machinery depreciation
40,000
40
Total fixed production costs
66,000
66
Total production cost
2,03,000 203Related Questions
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