Problem 14-1A Cost computation, classification, and analysis LO C2, C3 The follo

Question

Problem 14-1A Cost computation, classification, and analysis LO C2, C3 The following information applies to the questions displayed below Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $519 each. Costs 1. Plastic for casing-$20,000 2. Wages of assembly workers-$82,000. 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$38,000 5. Drum stands (1,000 stands purchased)-$29,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$185,000 8. Annual flat fee for factory maintenance service-$20,000 9. Sales commissions-$24 per unit 0.Machinery depreciation, straight-line- $49,000

Explanation / Answer

Part 1

Part 2

Cost by Behavior Cost By Funtion Costs Variable Fixed Product Period 1. Plastic for casing 20000 20000 20000 2. Wages of assembly workers 82000 80000 80000 3. Property taxes on factory 7000 7000 7000 4. Accounting staff salaries 38000 38000 38000 5. Drum stands 29000 29000 29000 6. Rent cost of equipment for sales staff 36000 36000 36000 7. Upper management salaries 185000 185000 185000 8. Annual flat fee for factory maintenance service 20000 20000 20000 9. Sales commissions 24000 24000 10. Machinery depreciation. straight-line 49000 49000 49000

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