Question

Number 4

Required information Problem 01-1A Cost computation, classification, and analysis LO C2, C3 (The following information applies to the questions displayed below.) Part 1 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 1 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.) Cost by Behavior Variable Screenshot Cost by Function Product Period Costs

Answer 1

Cost by Behaviour Cost by Function I Costs Variable fixed Product Period 1 | Plastic for casing $17,000 1$ 17,000 2. wages of assembly workers $82,000 $ 82,000 3. Property taxes on factory $5,000 $5,000 4 Accounting staff salaries $35,000 $35,000 Drum stands $ 26,000 $26,000 6. Rent cost of equipment for $10,000 sales staff $ 10,000 Upper management salaries $ 125000 $125,000 Annual flat fee for factory $ 10,000 $10,000 maintenance service I sales commissions & 15,000 $ 15,000 10. Machinery depreciation, $40,000 $ 40,000 straight-line Calculation: sales commissions = $15 * 1,000 drum sets = $ 15,000