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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