Question
The following costs result from the production and sale of 4,800 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015.
| The following costs result from the production and sale of 4,800 drum sets manufactured by Tight Drums Company for the year ended December 31, 2015. The drum sets sell for $330 each. The company has a 25% income tax rate. |
| Variable production costs | ||
| Plastic for casing | $ | 158,400 |
| Wages of assembly workers | 470,400 | |
| Drum stands | 201,600 | |
| Variable selling costs | ||
| Sales commissions | 148,800 | |
| Fixed manufacturing costs | ||
| Taxes on factory | 7,000 | |
| Factory maintenance | 14,000 | |
| Factory machinery depreciation | 74,000 | |
| Fixed selling and administrative costs | ||
| Lease of equipment for sales staff | 14,000 | |
| Accounting staff salaries | 64,000 | |
| Administrative management salaries | 144,000 |
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
