Chapter 1

Chapter 1 - Problem 1-16A 1. Variable Fixed Cost Cost X X X...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 1-16A   1. Period Product Cost (Selling  and Oppor- Variabl e Fixed Direct  Direct  Mfg. Admin.) tunity  Sunk Name of the Cost Cost Cost Materials Labor Overhead Cost Cost Cost Yuko’s present salary, $3,000  per month. .............................. X X Loft rent, $400 per month. ......... X X Seeds, earth, pots and  fertilizer, $7 per tree. .............. X X Wages of gardener, $12 per  hour. ....................................... X X Advertising, $550 per month. .... X X Sales commission, $8 per trees X X Rent of production equipment,  $250 per month. ..................... X X Legal and filing fees, $300. ....... X X X Rent of sales office, $200 per  month. .................................... X X Phone for taking orders, $30  per month. .............................. X X
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Interest lost on savings  account, $3,000 per year. ...... X X 2. The $300 cost of incorporating the business is not a differential cost. Even though the cost was  incurred to start the business, it is a sunk cost. Whether Yuko produces bonsai trees or stays in her  present job, she will have incurred this cost.
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 04/01/2008 for the course ACCY 052 taught by Professor Sullivan during the Spring '08 term at GWU.

Page1 / 4

Chapter 1 - Problem 1-16A 1. Variable Fixed Cost Cost X X X...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online