isted here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Per unit cost Variable production costs Total variable production costs Fixed production costs Total fixed production costs Total production cost
isted here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each. Costs 1. Plastic for casing—$17,000 2. Wages of assembly workers—$86,000 3. Property taxes on factory—$6,000 4. Accounting staff salaries—$36,000 5. Drum stands (1,000 stands purchased)—$31,000 6. Rent cost of equipment for sales staff—$48,000 7. Upper management salaries—$170,000 8. Annual flat fee for factory maintenance service—$13,000 9. Sales commissions—$20 per unit 10. Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeat Calculation of Manufacturing Cost per Drum Set Item Total cost Per unit cost Variable production costs Total variable production costs Fixed production costs Total fixed production costs Total production cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $510 each.
| Costs | |
| 1. | Plastic for casing—$17,000 |
| 2. | Wages of assembly workers—$86,000 |
| 3. | Property taxes on factory—$6,000 |
| 4. | Accounting staff salaries—$36,000 |
| 5. | Drum stands (1,000 stands purchased)—$31,000 |
| 6. | Rent cost of equipment for sales staff—$48,000 |
| 7. | Upper management salaries—$170,000 |
| 8. | Annual flat fee for factory maintenance service—$13,000 |
| 9. | Sales commissions—$20 per unit |
| 10. | Machinery |
2. Compute the
|
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