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Required information Problem 1-1A Cost computation, classification, and analysis

ID: 2403861 • Letter: R

Question

Required information Problem 1-1A Cost computation, classification, and analysis LO C2, C3 The following information applies to the questions displayed below.j Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $482 each. Costs 1. Plastic for casing-$18,000 2. Wages of assembly workers-$88,000 3. Property taxes on factory-$4,ee0 4. Accounting staff salaries-$39,000 5. Drum stands (1,00 stands purchased)-38,00 6. Rent cost of equipment for sales staff-$36,000 7.Upper management salaries-$155,000 8. Annual flat fee for factory maintenance service-$19,e00 9. Sales commissions-$21 per unit 10. Machinery depreciation, straight-line-$37,e00

Explanation / Answer

Variable Fixed Products Period Plastic for casting 18000 18000 Wages of assembly workers 88000 88000 Property taxes salaries 4000 4000 Accounting staff salaries 39000 39000 Drum Stands 38000 38000 Rent cost of Equipment for sales staff 36000 36000 Upper management salaries 155000 155000 Annual flat fee for maintenance service 19000 19000 Sales commissions =21*units sold =21*units sold Machinery derpeciation straight lien 37000 37000

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