Question

Chapter 14 Homework Help Save & Exit Submit Check my work Required information (The following information applies to the questions displayed below.) Part 1 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 $467 each. points eBook Print References Costs 1. Plastic for casing-$16,000 2. Wages of assembly workers-$92,000 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-$150,000 8. Annual flat fee for factory maintenance service-$22,000 9. Sales commissions-$25 per unit 10. Machinery depreciation, straight-line-$37,000 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.)

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Answer 1

Ans.

Classification of Cost and its amount

Cost	Variable	Fixed	Product	Period
Plastic for Casing	$16,000		$16,000
Wages for Assembly Worker	$92,000		$92,000
Property Tax on Factory		$5,000		$5,000
Accounting Staff Salary		$33,000		$33,000
Drum Stand	$37,000		$37,000
Rent cost of Equipment for Sale Staff		$24,000		$24,000
Upper Management Salary		$150,000		$150,000
Annual Flat Fee for Factory Maintenance		$22,000		$22,000
Sales Commission	$25,000		$25,000
Machinery Depreciation		$37,000		$37,000