Question

Required information [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 by TrueBeat. The drum sets sell for $434 each. Costs 1. Plastic for casing-$21,000 2. Wages of assembly workers-$90,000 3. Property taxes on factory-$6,000 4. Accounting staff salaries-$31,000 5. Drum stands (1,000 stands purchased)-$31,000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$120,000 8. Annual flat fee for factory maintenance service-$13,000 9. Sales commissions-$22 per unit 10. Machinery depreciation, straight-line-$44,000

Answer 1

		Cost by Behavior		Cost by Function
		Variable	Fixed	Product	Period
1.	Plastic for casing	21,000		21,000
2.	Wages for assembly workers	90,000		90,000
3.	Property taxes on factory		6,000	6,000
4.	Accounting staff salaries		31,000		31,000
5	Drum stands	31,000		31,000
6.	Rent cost of equipment for sales staff		24,000		24,000
7.	Upper management salaries		120,000		120,000
8.	Annual flat fee for factory maintenance service		13,000	13,000
9.	Sales commissions	22,000			22,000
10.	Machinery depreciation, straight line		44,000	44,000

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