Listed here are the total costs associated with the 2013 production of 1,000 drum sets manufactured by DrumBeat. The drum sets sell for $514 each.

  
 

 Costs
1. Plastic for casing—$17,000
2. Wages of assembly workers—$92,000.
3. Property taxes on factory—$7,000
4. Accounting staff salaries—$31,000
5. Drum stands (1,000 stands outsourced)—$28,000
6. Rent cost of equipment for sales staff—$24,000
7. Upper management salaries—$205,000
8. Annual flat fee for maintenance service on factory equipment—$18,000 
9.

 Sales commissions—$23 per unit, 1,000 units sold.

 

 

 

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.)

10. Machinery depreciation, straight-line—$40,000

 

    • 10 years ago
    7-8
    NOT RATED

    Purchase the answer to view it

    blurred-text
    • attachment
      7-8.pdf