Question

pter 18 Homework Saved Help Save & Exit Subm Check my work 5 o 2 of 2 Required information Problem 18-1A Cost computation, classification, and analysis LO C2, C3 (The following information applies to the questions displayed below.) ts Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $455 each. Book Costs 1. Plastic for casing-$18,000 2. Wages of assembly workers-$84,000 3. Property taxes on factory-$6,000 4. Accounting start salaries-$40,000 5. Drum stands (1,000 stands purchased)-527,000 6. Rent cost of equipment for sales staft140,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-$21,000 9. Sales comissions-$20 per unit 10. Machinery depreciation, straight-line-36,000 Problem 18-1A Part 2

Answer 1

Calculation of manufacturing cost per drum set Item Total Per unit Variable production costs: Plastic for casing $ 18,000 $ 18 Wages of assembly workers $ 84,000 $ 84 Drum stands $ 27,000 $ 27 Total variable production costs $ 1,29,000 $ 129 Fixed production costs Property taxes on factory $ 6,000 $ 6 Annual fee for maintenance service $ 21,000 $ 21 Machinery depreciation, straight-line $ 36,000$ 36 Total fixed production costs $ 63,000 $ 63 Total production cost $ 1,92,000 $ 192