Required information

Problem 01-1A Cost computation, classification, and analysis LO C2, C3

[The following information applies to the questions displayed below.]

Listed here are the total costs associated with the production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $456 each.

	Costs
1.	Plastic for casing$19,000
2.	Wages of assembly workers$89,000
3.	Property taxes on factory$7,000
4.	Accounting staff salaries$30,000
5.	Drum stands (1,000 stands purchased)$31,000
6.	Rent cost of equipment for sales staff$24,000
7.	Upper management salaries$155,000
8.	Annual flat fee for factory maintenance service$13,000
9.	Sales commissions$20 per unit
10.	Machinery depreciation, straight-line$38,000

Problem 01-1A Part 1

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.)

Problem 01-1A Part 2

2. Compute the manufacturing cost per drum set.