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C2 C3 Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by PROBLEM SET A TrueBeat. The drum

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C2 C3 Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by PROBLEM SET A TrueBeat. The drum sets sell for $500 each. Problem 18-1A Variable or Fixed Product or Period Cost computation Costs Variable Fixed Product Period classification, and analysis 1. Plastic for casing $17.000 $17,000 $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-linc540,000 Required 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The Check (Total variable first cost is completed as an example.) production cost $125,000 2. Compute the manufacturing cost per drum set. Analysis Component 3. Assume that 1.200 drum sets are produced in the next year. What do you predict will be the total cost of plastic for the casings and the per unit cost of the plastic for the casings? Explain. 4. Assume that 1.200 drum sets are produced in the next year. What do you predict will be the total cost of property taxes and the per unit cost of the property taxes? Explain

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