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. Costs1.Plastic for casing—$17,0002.Wages of assembly workers—$86,0003.Property taxes on factory—$6,0004.Accounting staff salaries—$36,0005.Drum stands (1,000 stands purchased)—$31,0006.Rent cost of equipment for sales staff—$48,0007.Upper management salaries—$170,0008.Annual flat fee for factory maintenance service—$13,0009.Sales commissions—$20 per unit10.Machinery depreciation, straight-line—$45,000 2. Compute the manufacturing cost per drum set. TrueBeatCalculation of Manufacturing Cost per Drum SetItemTotal costPer unit costVariable production costs Total variable production costs Fixed production costs Total fixed production costs Total production cost

Cost sheet is a method of allocating total cost into different categories such as direct material…

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Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1E: Classify Costs Following is a list of various costs incurred in producing replacement automobile...

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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 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

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