Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat The drum sets sell for $500 each Required 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 ) Check (1) Total variable production cost, $125,000 Compute the manufacturing cost per drum set Analysis Component 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 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 Variable or Fixed Variable Fixed Product or Period Product Period $17,000 $17,000 Costs 1 Plastic for casing $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 line $40,000

The Answer is in the image, click to view ...

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Sep 18, 2024

Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each. Required

Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $500 each.

image text in transcribed

Required

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.)

Check (1) Total variable production cost, $125,000
Compute the manufacturing cost per drum set.

Analysis Component

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?
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?

Variable or Fixed Variable Fixed Product or Period Product Period $17,000 $17,000 Costs 1. Plastic for casing-$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-line-$40,000