Check my work 5 Required information Part 1 of 2 The following information appli
ID: 2404048 • Letter: C
Question
Check my work 5 Required information Part 1 of 2 The following information applies to the questions displayed below. 2.85 points Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $492 each Costs eBook Print References 1. Plastic for casing-$19,000 2. Wages of assembly workers-$83,000 3. Property taxes on factory-$4,0o0 4. Accounting staff salaries-$32,000 5. Drum stands (1,000 stands purchased)-$41,000 6. Rent cost of equipment for sales staff-$24, 000 7. Upper management salaries-$165, 000 8. Annual flat fee for factory maintenance service $21,000 9. Sales commissions-$20 per unit 10. Machinery depreciation, straight-line $47,000 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.)Explanation / Answer
Answer:
1
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1
Plastic for casing
$19,000
$19,000
2
Wages of assembly workers
83,000
83,000
3
Property taxes on factory
$4,000
4,000
4
Accounting staff salaries
32,000
32,000
5
Drum stands
41,000
41,000
6
Rent cost of equipment for sales staff
24,000
24,000
7
Upper management salaries
165,000
165,000
8
Annual flat fee paid for maintenance service
on factory equipment
21,000
21,000
9
Sales commissions
20,000
20,000
10
Machinery depreciation, straight-line
47,000
47,000
Working notes for the above answer is as under
W.N-1
Sales commissions
= $20 × 1,000
= $20,000
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1
Plastic for casing
$19,000
$19,000
2
Wages of assembly workers
83,000
83,000
3
Property taxes on factory
$4,000
4,000
4
Accounting staff salaries
32,000
32,000
5
Drum stands
41,000
41,000
6
Rent cost of equipment for sales staff
24,000
24,000
7
Upper management salaries
165,000
165,000
8
Annual flat fee paid for maintenance service
on factory equipment
21,000
21,000
9
Sales commissions
20,000
20,000
10
Machinery depreciation, straight-line
47,000
47,000