Listed here are the total costs associated with the 2013 production of 1,000 drum sets manufactured by Drum Beat. The drum sets sell for $506 each.
Costs
1.Plastic for casing $16,000
2.Wages of assembly workers $85,000.
3.Property taxes on factory $6,000
4.Accounting staff salaries $33,000
5.Drum stands (1,000 stands outsourced) $36,000
6.Rent cost of equipment for sales staff $24,000
7.Upper management salaries $210,000
8.Annual flat fee for maintenance service on factory equipment $12,000
9.Sales commissions $14 per unit
10.Machinery depreciation, straight-line $46,000
rev: 09_03_2014_QC_53123
1.
value:
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.)
rev: 09_03_2014_QC_53123
references book & resources
2.value:
2.Prepare the manufacturing cost per drum set.