Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information (The following information applies to the questions displayed below.) Listed here are the total costs associated with the 2017 production of 1,000 drum

image text in transcribed

Required information (The following information applies to the questions displayed below.) Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $506 each. Costs 1. Plastic for casing-$20,000 2. Wages of assembly workers-$82,000 3. Property taxes on factory-$4,000 4. Accounting staff salaries-$33,000 5. Drum stands (1,000 stands purchased)-$37,000 6. Rent cost of equipment for sales staff-$48,000 7. Upper management salaries-$170,000 8. Annual flat fee for factory maintenance service-$21,000 9. Sales commissions-$25 per unit 10. Machinery depreciation, straight-line-$37,000 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.) Costs Cost by Behavior Variable Fixed $ 20,000 Cost by Function Product Period $ 20,000 - nim w No 1 Plastic for casing 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ready Notes For Use With Managerial Accounting

Authors: Ronald W. Hilton

4th Edition

0073656518, 978-0073656519

More Books

Students also viewed these Accounting questions

Question

=+Have they changed the way employees view IP?

Answered: 1 week ago