Question

Help Save & Exit Submit Chapter 1 Homework Check my work 7 4 Required information Problem 1-1A 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 2017 production of 1,000 drum sets manufactured by TrueBest. The drum sets sell for $500 each Coat 1. Pastie for casing-$17,000 2. Wees of assembly worker-382.000 3. Property taxes on factory-$5,000 4. Accounting staff salaries-535,000 5. Drus stands (1.000 standa purchased)-626,000 6. Rent cost of equipment for sales statt-510,000 7. Upper management salaries-$125,000 8. Annual flat fee for factory maintenance service-610,000 9. Sales commissions-615 per unit 10. Machinery depreciation, straightline-40,000 Problem 1-1A Part 1 Required: 1. Classify each cost and its amount as (n) either variable or fixed and (b) either product or period (The first cost is completed as an example.) ME < Pray Next > 7 of 11

Answer 1

1		Cost by behaviour		Cost by function
	Costs	Variable	Fixed	Product	Period
1	Plastic for casing	$                    17,000		$                 17,000
2	Wages of assembly workers	$                    82,000		$                 82,000
3	Property taxes on factory		$                5,000	$                   5,000
4	Accounting staff salaries		$              35,000		$     35,000
5	Drum stands	$                    26,000		$                 26,000
6	Rent cost of equipment for sales staff		$              10,000		$     10,000
7	Upper management salaries		$          1,25,000		$ 1,25,000
8	Annual flat fee paid for maintenance services		$              10,000	$                 10,000
9	Sales commissions ($15 X 1000)	$                    15,000			$     15,000
10	Machinery depreciation - straight line		$              40,000	$                 40,000