Homework SourseCheck my work 5 Required information Part 1 of 2 The followi
Solution
Answer:
1
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1
Plastic for casing
$19,000
$19,000
2
Wages of assembly workers
83,000
83,000
3
Property taxes on factory
$4,000
4,000
4
Accounting staff salaries
32,000
32,000
5
Drum stands
41,000
41,000
6
Rent cost of equipment for sales staff
24,000
24,000
7
Upper management salaries
165,000
165,000
8
Annual flat fee paid for maintenance service
on factory equipment
21,000
21,000
9
Sales commissions
20,000
20,000
10
Machinery depreciation, straight-line
47,000
47,000
Working notes for the above answer is as under
W.N-1
Sales commissions
= $20 × 1,000
= $20,000
| Cost by Behavior | Cost by Function | |||||
| Costs | Variable | Fixed | Product | Period | ||
| 1 | Plastic for casing | $19,000 | $19,000 | |||
| 2 | Wages of assembly workers | 83,000 | 83,000 | |||
| 3 | Property taxes on factory | $4,000 | 4,000 | |||
| 4 | Accounting staff salaries | 32,000 | 32,000 | |||
| 5 | Drum stands | 41,000 | 41,000 | |||
| 6 | Rent cost of equipment for sales staff | 24,000 | 24,000 | |||
| 7 | Upper management salaries | 165,000 | 165,000 | |||
| 8 | Annual flat fee paid for maintenance service on factory equipment | 21,000 | 21,000 | |||
| 9 | Sales commissions | 20,000 | 20,000 | |||
| 10 | Machinery depreciation, straight-line | 47,000 | 47,000 | |||
