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Question 1 (of 5) Problem 18-1A Cost computation, classification, and analysis L

ID: 2422081 • Letter: Q

Question

Question 1 (of 5) Problem 18-1A Cost computation, classification, and analysis LO C2, C3 IThe following information applies to the questions displayed below] Listed here are the total costs associated with the 2015 production of TrueBeat. The drum sets sell for $553 each re are the total costs associated with the 2015 production of 1,000 drum sets manufactured by Costs 1. Plastic for casing-$16,000 2. Wages of assembly workers-$92,000 3 Property taxes on factory-$6,000 4 Accounting staff salaries-$38,000 5. Drum stands (1,000 stands purchased)-$28,000 6 Rent cost of equipment for sales staff-$36,000 7 Upper management salaries-$210,000 8. Annual flat fee for factory maintenance service-$21,000 9. Sales commissions-$24 per unit 10. Machinery depreciation, straight-line-$46,000 References 0

Explanation / Answer

Classification of costs as variable or fixed / Product or Period :

S.No. Costs Cost by Behavior Cost by Function Variable Fixed Product Period 1 Plastic for casing 16000 16000 2 Wages of assembly workers 92000 92000 3 Property taxes on factory 6000 6000 4 Accounting staff salaries 38000 38000 5 Drum stands 28000 28000 6 Rent cost of equipments for sales staff 36000 36000 7 Upper Management salaries 210000 210000 8 Annual flat fee for factory maintenance service 21000 21000 9 Sales commissions 24000 24000 10 Machinery depreciation - straight line 46000 46000
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