Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $564 each. (Assume there is no ending inventory in the year 2011.) Costs 1. Plastic for casing - $21,000 2. Wages of assembly workers - $80,000 3. Property taxes on factory - $7,000 4. Accounting staff salaries - $41,000 5. Drum stands (1,000 stands outsources) - $39,000 6. Rent cost of equipment for sales staff - $48,000 7. Upper management salaries - $205,000 8. Annual flat fee for maintenance service - $17,000 9. Sales commissions per unit - $22 10. Machinery depreciation - $37,000 Required: 1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period.
Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $564 each. (Assume there is no ending inventory in the year 2011.)
Costs
1. Plastic for casing - $21,000
2. Wages of assembly workers - $80,000
3. Property taxes on factory - $7,000
4. Accounting staff salaries - $41,000
5. Drum stands (1,000 stands outsources) - $39,000
6. Rent cost of equipment for sales staff - $48,000
7. Upper management salaries - $205,000
8. Annual flat fee for maintenance service - $17,000
9. Sales commissions per unit - $22
10. Machinery
Required:
1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
