Question

Number 5

Problem 01-1A Cost computation, classification, and analysis LO C2, C3 (The following information applies to the questions displayed below.) Part 2 of 2 Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. 0.75 points Skipped Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers $82,000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-$35,000 5. Drum stands (1,000 stands purchased)-$26,000 6. Rent cost of equipment for sales staff-$10,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$10,000 9. Sales commissions-$15 per unit 10. Machinery depreciation, straight-line-$40,000 eBook Print References Problem 01-1A Part 2 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Variable production costs Per unit cost Screenshot

Answer 1

2
Calculation of Manufacturing Cost per Drum Set
Item	Total cost	Per unit cost
Variable production costs:
Plastic for casing	17000	17
Wages of assembly workers	82000	82
Drum stands	26000	26
Total variable production costs	125000	125
Fixed production costs
Property taxes on factory	5000	5
Annual fee for maintenance service	10000	10
Machinery depreciation	40000	40
Total fixed production costs	55000	55
Total production cost	180000	180