[The following information applies to the questions dlisplayed below. Listed her

Question

[The following information applies to the questions dlisplayed below. Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $529 each .dsts 1. Plastic for casing-$17,000 2. Wages of assembly workers-$91,000. 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$31,000 5. Drum stands (1,000 stands purchased)-$29,000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$220,000 Annual flat fee for factory maintenance service 8 $19,000 9. Sales commissions-$16 per unit 10. Machinery depreciation, straight-line-$40,000

Explanation / Answer

Cost by Behavior

Cost by Function

Costs

Variable

Fixed

Product

Period

1

Plastic for Casing

17000

17000

2

Wages of assembly workers

91000

91000

3

property taxes on factory

7000

7000

4

accounting staff salaries

31000

31000

5

Drum stands

29000

29000

6

Rent cost of Equipment for sales staff

24000

24000

7

Upper Management Salaries

220000

220000

8

Annual flat fee for factory maintenance services

14000

14000

9

Sales commissions

16000

16000

10

Machinery Depreciation, Straight line

40000

40000

Cost by Behavior

Cost by Function

Costs

Variable

Fixed

Product

Period

1

Plastic for Casing

17000

17000

2

Wages of assembly workers

91000

91000

3

property taxes on factory

7000

7000

4

accounting staff salaries

31000

31000

5

Drum stands

29000

29000

6

Rent cost of Equipment for sales staff

24000

24000

7

Upper Management Salaries

220000

220000

8

Annual flat fee for factory maintenance services

14000

14000

9

Sales commissions

16000

16000

10

Machinery Depreciation, Straight line

40000

40000

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