Qutz #3 (The following information applies to the questions displayed below] Par
ID: 2404409 • Letter: Q
Question
Qutz #3 (The following information applies to the questions displayed below] Part 1 of 2 Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat The drum sets sell for $542 each 1. Plastic for casing-$19,0ee 2. Wages of assembly workers-$98,e80 Print 4. Accounting staff salaries-$38,880 5. Drun stands (1,eee stands purchased)-$33,880 6. Rent cost of equipment for sales staff-$24,8ee 900 8. Annual flat fee for factory maintenance service-$2e,eee 9. Sales commissions-522 per unit 1e. Machinery depreciation, straight-line-$37,888 . Classify each cost and its amount as (a) either variable or fixed and (b) ether product or period. (The first cost is completed as an example.) Cost by Function Costs Variable Fixed Product Period for casingExplanation / Answer
Cost by behavior
Cost by function
Variable
Fixed
Product
Period
1
Plastic for casing
$19,000
$19,000
2
Wages for assembly workers
$90,000
$90,000
3
Property taxes on factory
$4,000
$4,000
4
Accounting staff salaries
$38,000
$38,000
5
Drum stands
$33,000
$33,000
6
Rent cost of equipment for sales stuff
$24,000
$24,000
7
Upper management salaries
$2,20,000
$2,20,000
8
Annual flat fee for factory maintenance service
$20,000
$20,000
9
Sales commissions
$22,000
$22,000
10
Machinery depreciation, straight line
$37,000
$37,000
True Beat
Calculation of Manufacturing Cost per Drum set
For year ended December 31 2017
Item
Total product cost
Per unit cost
Variable production costs
Plastic for casing
$19,000
$19
wages for assembly workers
$90,000
$90
Drum stands
$33,000
$33
Total variable productions costs
$1,42,000
$142
Fixed production costs
Property taxes on factory
$4,000
$4
Annual flat fee for factory maintenance service
$20,000
$20
Machinery depreciation, straight line
$37,000
$37
Total fixed production costs
$61,000
$61
Total production cost
$2,03,000
$203
Cost by behavior
Cost by function
Variable
Fixed
Product
Period
1
Plastic for casing
$19,000
$19,000
2
Wages for assembly workers
$90,000
$90,000
3
Property taxes on factory
$4,000
$4,000
4
Accounting staff salaries
$38,000
$38,000
5
Drum stands
$33,000
$33,000
6
Rent cost of equipment for sales stuff
$24,000
$24,000
7
Upper management salaries
$2,20,000
$2,20,000
8
Annual flat fee for factory maintenance service
$20,000
$20,000
9
Sales commissions
$22,000
$22,000
10
Machinery depreciation, straight line
$37,000
$37,000
True Beat
Calculation of Manufacturing Cost per Drum set
For year ended December 31 2017
Item
Total product cost
Per unit cost
Variable production costs
Plastic for casing
$19,000
$19
wages for assembly workers
$90,000
$90
Drum stands
$33,000
$33
Total variable productions costs
$1,42,000
$142
Fixed production costs
Property taxes on factory
$4,000
$4
Annual flat fee for factory maintenance service
$20,000
$20
Machinery depreciation, straight line
$37,000
$37
Total fixed production costs
$61,000
$61
Total production cost
$2,03,000
$203
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