Question

Help Save Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat The drum sets sell for $460 each 1. Plastic for casing-$19,000 2.Wages of assembly workers-$83,00 3. Property taxes on factory-55,000 4, Accounting staff salaries-s41,000 S. Drus stands (1,000 stands purchased)-,0 6. Rent cost of equipment for sales staff-$36,000 7.Upper managenent salaries-$5145,800 8. Annual flat fee for factory saintenance service-513, 9. Sales commissions-$19 per unit 10. Hachinery depreciation, stralght-line-539,0 Problem 1-1A Part1 Required: 1. Classify each cost and its amount as (a) either variable or fixed and (bj elther product or peniod.(The first cost is completed as an example) Plastic for casing 6

Answer 1

		Cost by Behavior		Cost by Function
	Costs	Variable	Fixed	Product	Period
1.	Plastic for Casing	$ 19,000		$ 19,000
2.	Wages of Assembly Workers	83,000		83,000
3.	Property Taxes on Factory		$ 5,000	5,000
4.	Accounting Staff Salaries		41,000		41,000
5.	Drum Stands	34,000		34,000
6.	Rent Cost of Equipment for Sales Staff		36,000		36,000
7.	Upper Management Salaries		145,000		145,000
8.	Annual Flat Fee for Factory Maintenance Service		13,000	13,000
9.	Sales Commission	19,000			19,000
10.	Machinery Depreciation , Straight-line		39,000	39,000