Book2 - Matthew Caba 1/22/2008 2-23. Cost Item Cost...

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Unformatted text preview: Matthew Caba 1/22/2008 2-23. Cost Item Cost Behavior Selling or Product Costs Variable Fixed Administrative Direct Factory Labor, Direct $118,000 $118,000 Advertising $50,000 $50,000 Factory Supervision $40,000 Property Taxes, factory $3,500 Sales Commissions $80,000 $80,000 Insurance, Factory $2,500 Depreciation, office equipmen $4,000 Lease cost, factory equipment $12,000 $12,000 Indirect materials, factory $6,000 Depreciation, factory $10,000 General office supplies, billing $3,000 $3,000 General office salaries $60,000 Direct Materials $94,000 $94,000 Utilities, factory $20,000 $267,000 $236,000 $133,000 $224,000 $1,006,000 $503 per patio set If production dropped to only 1000 patio sets, you could expect the average price to decrease som Since they factory is only producing half it uses up only half of the materials, but the workers, utilit...
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Book2 - Matthew Caba 1/22/2008 2-23. Cost Item Cost...

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