Required information The fowowing informastion appies to the questions displayed

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Required information The fowowing informastion appies to the questions displayed below Part 2 of 2 Listed here ere the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $450 each. Plastie ter eanisg-421,000 Wages of Property taxes Accounting staft salaries-38.-9 DEUR Stands 1 oto atands parehased)-835 000 points 2. per agerent salaries-125,000 .saleo eonai..ion-622 pe unit serviee 919,00 10-Hachinecy depreciation, straight-li 547,000 2. Calculate the manufacturing cost per drum set Calouiation of Manufasturing Cest par Drum Set For Year Ended December 31, 201 Totai varlable production costs Prev2f 20Next>

Explanation / Answer

Ans)

Calculation of Manufacturing cost per drum set:

Per unit cost = Total cost / 1000 drum sets

Item Total cost Per unit cost Plastic for casing 21,000 21 wages of assembly workers 90,000 90 Drum stands 35000 35 Total variable production costs 146000 146 Fixed production costs Property taxes on factory 8,000 8 Annual fee for maintainence service 19,000 19 Machinery depreciation 47,000 47 Total fixed production costs 74000 74 Total production costs 220,000 220

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