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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. Costs
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.
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 |
. 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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