Maurice Tutor

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Education

  • MCS,PHD
    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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  • Professor
    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 24 Jul 2017 My Price 9.00

Neat Beat

Listed here are the total costs associated with the 2011 production of 1,000 drum sets manufactured by Neat Beat. The drum sets sell for $300 each.

 

Cost by Behavior

Cost by Function

Costs

Variable

Fixed

Product

Period

1. Plastic for casing—$12,000

$12,000

  

$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. Upper management salaries—$100,000

        

8. Annual flat fee for maintenance service—$9,000

        

9. Sales commissions—$10 per unit

        

10. Machinery depreciation—$10,000

        

Required

1. Classify each cost and its amount as (a) either fixed or variable and (b) either product or period. (The first cost is completed as an example.)

2. Compute the manufacturing cost per drum set.

Analysis Component

3. Assume that 1,200 drum sets are produced in 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 the casings? Explain.

4. Assume that 1,200 drum sets are produced in the next year. What do you predict will be the total cost of property taxes and the per unit cost of the property taxes? Explain.

Answers

Maurice Tutor
(5)
Status NEW Posted 24 Jul 2017 12:07 AM My Price 9.00

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