Problem 141A Cost computation classification and analysis LO

Problem 14-1A Cost computation, classification, and analysis LO C2, C3 The following information applies to the questions displayed 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 $519 each. Costs 1. Plastic for casing-$20,000 2. Wages of assembly workers-$82,000. 3. Property taxes on factory-$7,000 4. Accounting staff salaries-$38,000 5. Drum stands (1,000 stands purchased)-$29,000 6. Rent cost of equipment for sales staff-$36,000 7. Upper management salaries-$185,000 8. Annual flat fee for factory maintenance service-$20,000 9. Sales commissions-$24 per unit 0.Machinery depreciation, straight-line- $49,000

Solution

Part 1

Part 2

		Cost by Behavior	Cost By Funtion
	Costs	Variable	Fixed	Product	Period
1.	Plastic for casing 20000	20000		20000
2.	Wages of assembly workers 82000	80000		80000
3.	Property taxes on factory 7000		7000	7000
4.	Accounting staff salaries 38000		38000		38000
5.	Drum stands 29000	29000		29000
6.	Rent cost of equipment for sales staff 36000		36000		36000
7.	Upper management salaries 185000		185000		185000
8.	Annual flat fee for factory maintenance service 20000		20000	20000
9.	Sales commissions	24000			24000
10.	Machinery depreciation. straight-line 49000		49000	49000