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1-5 6 7-9 DQ QS Ex PR Class Notes Please complete the Problem as follows Listed here are the total costs associated with the 20XX production of 700 drum sets manufactured by Roland. The drum sets sell for $600 each Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1) Drum stands (700 stands outsourced)--$17,500 17.500 17.500 2) Annual flat fee for factory equip repair service--$15,400 Rent cost of equipment for sales staff--$10,000 4) Upper management salaries-$170,000 Wages of assembly workers--560.500 6) Property taxes on factory building--$3,500 7) Accounting staff salaries--$45,000 8) Factory machinery depreciation-$26,000 Sales commissions --$20 per unit (multiply by units) 10) Plastic for casing-$12,600 Hint: Treat Sales Commissions as a variable & period cost. To get cost per drum, add the product costs up and divide by number of drums produced. Remember variable costs vary in total when the production volume changes and fixed costs stay the same regardless of production volume. Always assume Straight Line depreciation method for depreciation in this class. Required Fill in the above chart. Classify each cost and its amount as (o) either fixed or variable and (b) either product or period (the first cost is completed as an example). Compute the manufacturing cost per drum set. Analysis Component - complete both 3) Assume that 1,000 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 1.000 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. (How does this type of cost compare to the cost it question 37)