D chapter 18 d, ezto.mheducation.com/hm.tpx -Chapter 18 Questions 1-2 (of 5) The

ID: 2780633 • Letter: D

Question

D chapter 18 d, ezto.mheducation.com/hm.tpx -Chapter 18 Questions 1-2 (of 5) The following information applies to the questions dispiayed beloww Listed here are the total costs associated with the 2015 production of 1,000 drum sets manufactured by TrucBeat. The drum scts sell for $541 each. Costs 1. Plastic for casing-$17000 2. Wages of assembly workers-$90.000. 3. Property taxes on factory $6,000 4. Accounting staff salaries-34,000 5. Drum stands (1,000 stands purchasedh-$27000 6. Rent cost of equipment for sales staff-$24,000 7. Upper management salaries-$210,000 8. Annual flat fee for factory maintenance service $13,000 9. Sales commissions-$26 per unit 10. Machinery depreciation, straight-line-$45,000 value: 10.00 points Required 1. Classify each cost and its amount as (a) either variable or fixed and (b) either product or period. (The first cost is completed as an example.) 12-10 PM Type here to search 1114/2017

Explanation / Answer

cost

Variable $

Fixed $

PLASTIC FOR CASING

17000

WAGES OF ASSEMBLY WORKERS

90000

PROPERTY TAXES ON FACTORY

6000

ACCOUNTING STAFF SALARIES

34000

DRUM STANDS

27000

RENT COST OF EQYIPMENT FOR SALES STAFF

24000

UPER MANAGEMENT SALARIES

210000

ANNUAL FLATE FEE

13000

SALES COMMISION

26000

MACHINE DEPRECIATION

45000

TOTAL

160000

332000

PER UNIT COST (1000)

160 PER UNIT

332 PER UNIT