Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $486 each.

	Costs
1.	Plastic for casing$17,000
2.	Wages of assembly workers$91,000
3.	Property taxes on factory$4,000
4.	Accounting staff salaries$33,000
5.	Drum stands (1,000 stands purchased)$38,000
6.	Rent cost of equipment for sales staff$48,000
7.	Upper management salaries$145,000
8.	Annual flat fee for factory maintenance service$12,000
9.	Sales commissions$20 per unit
10.	Machinery depreciation, straight-line$42,000

Problem 18-1A Part 1

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.)

2. Calculate the manufacturing cost per drum set.

		Cost by Behavior		Cost by Function
	Costs	Variable	Fixed	Product	Period
1.	Plastic for casing	$17,000		$17,000
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

TrueBeat
Calculation of Manufacturing Cost per Drum Set
For Year Ended December 31, 2017
Item	Total cost	Per unit cost
Variable production costs
Total variable production costs	0	0
Fixed production costs
Total fixed production costs	0	0
Total production cost	$0	$0