Problem 18-1A Cost computation, classification, and analysis LO C2, C3Skip to question [The following information applies to the questions displayed below.] Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $502 each. Costs1.Plastic for casing—$19,0002.Wages of assembly workers—$84,0003.Property taxes on factory—$6,0004.Accounting staff salaries—$41,0005.Drum stands (1,000 stands purchased)—$35,0006.Rent cost of equipment for sales staff—$24,0007.Upper management salaries—$185,0008.Annual flat fee for factory maintenance service—$14,0009.Sales commissions—$27 per unit10.Machinery depreciation, straight-line—$39,000 Problem 18-1A Part 1Required: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 anexample.)Cost by BehaviorCost by FunctionCostsVariableFixedProductPeriod1.Plastic for casing$19,0002$19,0002. Wages of assembly workers3. Property taxes on factory4. Accounting staff salaries5.Drum stands6.Rent cost of equipment for sales staff7. Upper management salaries8.Annual flat fee for factory maintenance service9.Sales commissions10. Machinery depreciation, straight-line Required informationProblem 18-1A 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 production of 1,000 drum sets manufactured by TrueBeat. The drumsets sell for $502 each.Costs1. Plastic for casing-$19,0002. Wages of assembly workers-$84,0003. Property taxes on factory-$6,0004. Accounting staff salaries-$41,0005. Drum stands (1,000 stands purchased)-$35,0006. Rent cost of equipment for sales staff-$24,0007. Upper management salaries-$185,0008. Annual flat fee for factory maintenance service-$14,0009. Sales commissions-$27 per unit10. Machinery depreciation, straight-line-$39,000

Variable cost is the one that varies with the variation in the level of production whereas the fixed cost remains fixed.

Answered: Listed here are the total costs…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Problem 18-1A Cost computation, classification, and analysis LO C2, C3

Skip to question

[The following information applies to the questions displayed below.]

Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $502 each.

	Costs
1.	Plastic for casing—$19,000
2.	Wages of assembly workers—$84,000
3.	Property taxes on factory—$6,000
4.	Accounting staff salaries—$41,000
5.	Drum stands (1,000 stands purchased)—$35,000
6.	Rent cost of equipment for sales staff—$24,000
7.	Upper management salaries—$185,000
8.	Annual flat fee for factory maintenance service—$14,000
9.	Sales commissions—$27 per unit
10.	Machinery depreciation, straight-line—$39,000

Problem 18-1A Part 1
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.)
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1.
Plastic for casing
$
19,000
2$
19,000
2. Wages of assembly workers
3. Property taxes on factory
4. Accounting staff salaries
5.
Drum stands
6.
Rent cost of equipment for sales staff
7. Upper management salaries
8.
Annual flat fee for factory maintenance service
9.
Sales commissions
10. Machinery depreciation, straight-line

Required information
Problem 18-1A 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 production of 1,000 drum sets manufactured by TrueBeat. The drum
sets sell for $502 each.
Costs
1. Plastic for casing-$19,000
2. Wages of assembly workers-$84,000
3. Property taxes on factory-$6,000
4. Accounting staff salaries-$41,000
5. Drum stands (1,000 stands purchased)-$35,000
6. Rent cost of equipment for sales staff-$24,000
7. Upper management salaries-$185,000
8. Annual flat fee for factory maintenance service-$14,000
9. Sales commissions-$27 per unit
10. Machinery depreciation, straight-line-$39,000

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