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Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $579 each.

Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $579 each.

Costs
1. Plastic for casing$19,000
2. Wages of assembly workers$91,000.
3. Property taxes on factory$8,000
4. Accounting staff salaries$34,000
5. Drum stands (1,000 stands purchased)$39,000
6. Rent cost of equipment for sales staff$48,000
7. Upper management salaries$220,000
8. Annual flat fee for factory maintenance service$22,000
9. Sales commissions$18 per unit
10. Machinery depreciation, straight-line$42,000

Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.)

Required:
1.

Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.)

Cost by Behavior Cost by Function
Costs Variable Fixed Product Period
1. Plastic for casing $19,000 $19,000
2. Wages of assembly workers
3. Property taxes on factory
4. Accounting staff salaries
5. Drum stands
6. Rent cost of equipment for sales staff
7. Upper management salaries
8. Annual flat fee for factory maintenance service
9. Sales commissions
10. Machinery depreciation, straight-line

Problem 1-1A Part 2

2.

Calculate the manufacturing cost per drum set

TrueBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2015
Item Total cost Per unit cost
Variable production costs
Total variable production costs
Fixed production costs
Total fixed production costs
Total production cost

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