Unformatted text preview: 9,000 9,000 Total overtime premiums paid 55,000 55,000 55,000 Cost of idle time: production employees 40,000 40,000 40,000 Administrative costs 150,000 Rental of office space for sales personnel 15,000 Sales commissions 5,000 Production promotion costs 10,000 TOTAL $2,680,000 $534,000 $629,000 $3,214,000 $394,000 2) The $15,000 used for rental of office space for sales personel is an opportunity cost. It is an opportunity cost because the expense is made as a rusult of the choice to convert the sales offices into storage space for raw materials. This represents my own individual work. Signature:______________________________...
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- Spring '08
- Accounting, Employee Benefit, production supervisor, fringe benefits