Question

Ne MyEagle x e Grades tex Ch 01P1 x Ch 01 Ex x McGraw- x McGraw X ® newconnect.mheducation.com/flow/cornect.html Ch 01 P 1-1A Saved Part 1 of 2 Required information Problem 01-1A Cost computation, classification, and analysis LO C2, C3 [The following information applies to the questions displayed below.) Listed here are the total costs associated with the production of 1,000 drum sets manufactured b sets sell for $483 each. Costa 1. Plastle for casing-$17.000 2. Wages of assembly workers 591.000 3. Property taxes on factory 55,000 4. Mccounting staff salaries $42.000 5. Drum stands (1.000 stands purchased $3.000 6. Bent contot goient for sales statt 512.000 7. Upper management salaries $150.000 8. Annual flat tee for factory maintenance service 521.000 9. Sales commissione 327 per unit 10. Machinery depreciation, straight line 44.000 Problem 01-1A Part 1 Required: 1. Classify each cost and its amount as aether variable or foued and o example) ther product or period. The first cost 1 2 of 2 Next > Qw

Answer 1

	Cost classification and amounts
	Costs	Cost by Behavior		Cost by Function
		Variable	Fixed	Product	Period
1	Plastic for casing	$       17,000.00		$ 17,000.00
2	Wages of assembly workers	91,000.00		91,000.00
3	Property taxes on factory		$ 5,000.00	5,000.00
4	Accounting staff salaries		42,000.00		$        42,000.00
5	Drum stands	38,000.00		38,000.00
6	Rent cost of equipment for sales staff		12,000.00		12,000.00
7	Upper mgmt. salaries		150,000.00		150,000.00
8	Annual flat fee paid for maintenance service		21,000.00	21,000.00
9	Sales commissions	$27 x units sold			$27 x units sold
10	Machinery depreciation, straight-line		44,000.00	44,000.00