659 Chapter 14 Managerial Accounting Concepts and Principles Connect isted here atre the total costs associated with the 2015 production of 1,000 drum sets manufactured by PROBLEM SET A The drum sets sell for $500 each. Variable or Fixed Product or Period Variable FixedProduct Period Problem 14-1A Cost computation classification, and analysis Costs I. Plastic for casing-$17.000 2. Wages of assembly workers-$82.000 3. Property taxes on factory $5.000 4. Accounting staff salaries $35,000 5. Drum stands (1,000 stands purchased) $26,000... $17,000 $17,000 6. Rent cost of equipment for sales staff -$10,000 7. Upper management salaries--$125,000 8. Annual flat fee for factory maintenance service -$10,000 . . . . 9. Sales commissions-$15 per unic 10. Machinery depreciation, straight-line-$40,000 . Required 1. Classify each cost and its amount as Check 1 Tou production cos (a) either variable or fixed 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. 4. 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. 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