Managerial Accounting Homework Revew Chapter 1 Answer Key

# Managerial Accounting Homework Revew Chapter 1 Answer Key -...

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Chapter One Homework Assignment EXERCISES E5. LO 3, “c” is false. E8. LO 5 a. variable b. fixed c. variable d. fixed E9. LO 5 a. variable b. variable c. fixed d. fixed e. variable E12. LO 5 Incremental revenue per day \$2,000 Less incremental costs: Labor 600 Parts 400 Transportation 40 Office staff 100 1,140 Net \$ 860 Opportunity cost = \$860 per day × 52 days = \$44,720 Rent and depreciation do not enter into the calculation of the opportunity cost since these costs are not incremental (they will be incurred whether or not Ken decides to stay open on Saturday). E14. LO 5 and 6, The incremental cost per gallon is likely to be less than \$5 because part of the \$5 amount relates to fixed costs such as depreciation of equipment. If the incremental cost per gallon is less than \$5, then the incremental cost of 10,000 gallons is less than \$50,000.

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PROBLEMS P1. LO 2 and 5 a. Santiago’s Salsa Budgeted Production Costs May 2008 22,000 Production Jars of Salsa Ingredient cost \$17,600 Labor cost
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## Managerial Accounting Homework Revew Chapter 1 Answer Key -...

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