Reference no: EM132719704
Listed here are the total costs associated with the 2017 production of 1,000 drum sets manufactured by TrueBeat. The drum sets sell for $436 each. Costs
1. Plastic for casing-$16,000
2. Wages of assembly workers-$80,000
3. Property taxes on factory-$5, 000
4. Accounting staff salaries-$37,000
5. Drum stands (1,000 stands purchased)-$41, 000
6. Rent cost of equipment for sales staff-$24,000
7. Upper management salaries-$125,000
8. Annual flat fee for factory maintenance service-$15, 000
9. Sales commissions-$13 per unit
10. Machinery depreciation, straight-line-$44,000
Problem 1: Calculate the manufacturing cost per drum set.
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