Listed here are the total costs associated with the 2011

Reference no: EM13604818

Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by NeatBeat. The drum sets sell for $300 each. (Assume there is no ending inventory in the year 2011.) Costs: 1. Plastic for casing-$12,000 2. Wages of assembly workers-$60,000 3. Property taxes on factory-$6,000 4. Accounting staff salaries-$45,000 5. Drum stands (1,000 stands outsourced)-$25,000 6. Rent cost of equipment for sales staff-$7,000 7. Administrative salaries-$100,000 8. Annual Flat Fee for Factory maintenance-$9,000 9. Sales commissions-$10 per unit 10. Machinery depreciation-$10,000 Check:

(1) Total variable manufacturing cost, $97,000

Required:

(1) Classify each cost and its amount as (a) either fixed or variable and (b) either product or period.

(2) Computer the manufacturing cost per drum set.

(3) Assume that 1200 drum sets are producedin the next year. What do you predict will be the total cost of plastic for the casings and the per unit cost of the plastic for casings? Explain and show work if applicable.

(4) Assume that 1200 drum sets are produced in the next year. What do you predict will be the total cost of prpoerty taxes and the per unit cost of the property taxes? Explain and show work if applicable.

Reference no: EM13604818

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