Question

Required information [The following information applies to the questions displayed below.] of 2 Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $507 each. Book Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-$83.000 3. Property taxes on factory-$6,000 4. Accounting staff salaries-$40,000 5. Drum stands (1,000 stands purchased)-$31,000 6. Rent cost of equipment for sales staff-$24.000 7. Upper management salaries-$180.000 8. Annual flat fee for factory maintenance service-$21,000 9. Sales commissions-$13 per unit 10. Machinery depreciation, straight-line-$46,000 References 2. Calculate the manufacturing cost per drum set.

Answer 1

Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2017
	Total cost	Per unit cost
Variable production costs
Plastic for casing	17000	17
Wages of assembly workers	83000	83
Drum stands	31000	31
Total variable production costs	131000	131
Fixed production costs
Property taxes on factory	6000	6
Annual fee for maintenance service	21000	21
Machinery depreciation	46000	46
Total fixed production costs	73000	73
Total production cost	204000	204