(30 minutes) Exercise 2-9 Product Cost Period Variable Fixed Direct Direct Mfg. (Selling and Opportunity Sunk Name of the Cost Cost Cost Materials Labor Overhead Cost Cost Cost Rental revenue forgone, $40,000 per year X Direct materials cost, $40 per unit X X Supervisor’s salary, $2,500 per month X X Direct labor cost, $18 per unit X X Rental cost of warehouse, $1,000 per month X X Rental cost of equipment, $3,000 per month X X Depreciation of the building, $10,000 per year X X X Advertising cost, $50,000 per year X X Shipping cost, $10 per unit X X Electrical costs, $2 per unit X X Return earned on investments, $6,000 per year X
Exercise 2-9 (30 minutes) Name of the Cost Variable Cost Fixed Cost Product Cost Period (Selling and Cost Opportunity Cost Sunk Cost Direct Materials Direct Labor Mfg. Overhead Rental revenue forgone, $40,000 per year X Direct materials cost, $40 per unit X X Supervisor’s salary, $2,500 per month X X Direct labor cost, $18 per unit X X Rental cost of warehouse, $1,000 per month X X Rental cost of equipment, $3,000 per month X X Depreciation of the building, $10,000 per year X X X Advertising cost, $50,000 per year X X Shipping cost, $10 per unit X X Electrical costs, $2 per unit X X Return earned on investments, $6,000 per year X
14e_gnb_ch02_sm.docx