Solve the given problem based on the following information.
Conglomco Corporation manufactures and sells widgets for $400 per unit. The total cost of production for 1,200 widgets is given below. Differentiate each cost as being either variable or fixed and product or period.
| Costs |
Cost by Behavior ($) |
|
Cost by Function ($) |
| Variable |
Fixed |
|
Product |
Period |
| Plastic for casing: $12,000 |
|
|
|
12,000 |
|
|
|
|
|
|
12,000 |
|
|
|
|
| Wages/assembly: $55,000 |
|
|
|
55,000 |
|
|
|
|
|
|
55,000 |
|
|
|
|
| Facility property taxes: $5,000 |
|
|
|
|
|
5,000 |
|
|
|
5,000 |
|
|
|
|
| Accounting staff salaries: $40,000 |
|
|
|
|
|
40,000 |
|
|
|
|
|
|
40,000 |
|
| Stands (1,200 outsourced): $22,000 |
|
|
22,000 |
|
|
|
|
|
|
22,000 |
|
|
|
|
| Rental equipment/sales staff: $6,000 |
|
|
|
|
|
6,000 |
|
|
|
|
|
|
6,000 |
|
| Salaries/management: $150,000 |
|
|
|
|
|
150,000 |
|
|
|
|
|
|
150,000 |
|
| Annual maintenance fee: $12,000 |
|
|
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
|
| Commissions (per unit): $12 |
|
|
|
14,400 |
|
|
|
|
|
|
|
|
|
14,400 |
|
| Depreciation on machinery: $12,000 |
|
|
|
|
|
12,000 |
|
|
|
12,000 |
|
|
|
|