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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 $549 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 $549 each. |
Costs | |
1. | Plastic for casing$18,000 |
2. | Wages of assembly workers$85,000. |
3. | Property taxes on factory$6,000 |
4. | Accounting staff salaries$40,000 |
5. | Drum stands (1,000 stands purchased)$33,000 |
6. | Rent cost of equipment for sales staff$48,000 |
7. | Upper management salaries$205,000 |
8. | Annual flat fee for factory maintenance service$15,000 |
9. | Sales commissions$13 per unit |
10. | Machinery depreciation, straight-line$41,000 |
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.) |
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2. | Calculate the manufacturing cost per drum set.
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