Manufacturing cost, Prepare the manufacturing cost per drum

Manufacturing cost

Reference no: EM13913101

Listed here are the total costs associated with the 2013 production of 1,000 drum sets manufactured by Drum Beat. The drum sets sell for $506 each.

Costs

1.Plastic for casing $16,000

2.Wages of assembly workers $85,000.

3.Property taxes on factory $6,000

4.Accounting staff salaries $33,000

5.Drum stands (1,000 stands outsourced) $36,000

6.Rent cost of equipment for sales staff $24,000

7.Upper management salaries $210,000

8.Annual flat fee for maintenance service on factory equipment $12,000

9.Sales commissions $14 per unit

10.Machinery depreciation, straight-line $46,000

rev: 09_03_2014_QC_53123

value:

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.)

rev: 09_03_2014_QC_53123

references book & resources

2.value:

2.Prepare the manufacturing cost per drum set.

Reference no: EM13913101

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