Please fill in the blanks 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 anexample.)Cost by BehaviorCost by FunctionCostsVariableFixedProductPeriod1. Plastic for casing2. Wages of assembly workers3. Property taxes on factory4. Accounting staff salaries5. Drum stands$17,000$17,0006. Rent cost of equipment for sales staff7. Upper management salaries8. Annual flat fee for factory maintenance service9. Sales commissions10. Machinery depreciation, straight-line%24 Required informationProblem 14-1A 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 2017 production of 1,000 drum sets manufactured by TrueBeat. Thedrum sets sell for $500 each.Costs1. Plastic for casing-$17,0002. Wages of assembly workers-$82,0003. Property taxes on factory-$5,0004. Accounting staff salaries-$35,0005. Drum stands (1,000 stands purchased)-$26,0006. Rent cost of equipment for sales staff-$10,0007. Upper management salaries-$125,0008. Annual flat fee for factory maintenance service-$10,0009. Sales commissions-$15 per unit10. Machinery depreciation, straight-line-$40,000

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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.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting staff salaries $ 17,000 17,000 %24

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.) Cost by Behavior Cost by Function Costs Variable Fixed Product Period 1. Plastic for casing 2. Wages of assembly workers 3. Property taxes on factory 4. Accounting staff salaries $ 17,000 17,000 %24

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Market Efficiency

Market efficiency refers to the market's ability to provide investors with all available information about investment options for buying and selling securities. Market efficiency reflects the true value of securities without undervaluing or overvaluing them. When the quality and quantity of information increase, the market becomes more efficient, allowing it to reduce arbitrage and obtain higher market returns from investment. In a well-functioning market, everyone receives all information completely and immediately at no cost. It opens up a plethora of opportunities for investors to access various investment options.

Question

Please fill in the blanks

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.)
Cost by Behavior
Cost by Function
Costs
Variable
Fixed
Product
Period
1. Plastic for casing
2. Wages of assembly workers
3. Property taxes on factory
4. Accounting staff salaries
5. Drum stands
$
17,000
$
17,000
6. Rent cost of equipment for sales staff
7. Upper management salaries
8. Annual flat fee for factory maintenance service
9. Sales commissions
10. Machinery depreciation, straight-line
%24

Required information
Problem 14-1A 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 2017 production of 1,000 drum sets manufactured by TrueBeat. The
drum sets sell for $500 each.
Costs
1. 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
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 unit
10. Machinery depreciation, straight-line-$40,000

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