Question

[The following information applies to the questions displayed below.) Ft 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 $507 each. Costs 1. Plastic for casing-$17,000 2. Wages of assembly workers-583,000 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-513 per unit 10. Machinery depreciation, straight-line-$46,000 References 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 example.)

Answer 1

cost by variable $17,000 function fired. cost by Behavior variable | freed $17,000 83,000 $ 6000 40,000 $83,000 6,000 $40,000 costs. 1) Plastic for casing 2) wages of assembly workers 3) Property tax on factory U) Accounting staff salaries -40,000. 5) Drum stands. - 31,000 6) Rent cost of equipment for sale staff ) upper management salarles-180,000 8) Annual flat fee for factory - 21,000 $39,000 $39,000 $24,000 24 000 $24,000 180,000 180,000 21,000 $24,000 $13,000 $13,000 managenial service a) sales comission. -13 10) machinery depreciation, straight line 46,000 $ 46,000 $46,000 Sales commission. a 13 pel dreem x 1000 $13,000

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