This preview shows pages 1–2. Sign up to view the full content.
This preview has intentionally blurred sections. Sign up to view the full version.View Full Document
Unformatted text preview: FC Period VC Period FC Difference = Product costs are costs to get inventory(products) ready to sell Period costs are all other costs not used to get inventory (products) ready to sell Problem 3 1 A. Opportunity cost $3,000, the amount given up if manufactured B. Sunk cost $120,000 C. Product cost $0.08 per pencil for materials and $0.04 for labor (overhea D. Not incremental Fixed costs of $10,800 and depreciation on factory space E. Fixed costs Fixed costs of $10,800 and depreciation on factory space F. Variable costs $0.08 materials per pencil, $0.04 labor per pencil and $0.01 delivery per pencil ad would also be included here if given)...
View Full Document
- Spring '11