(30 minutes) Exercise1-14 Cost Classifications for: (1) (3) Predicting Preparing (4) Cost (2) Financial Decision Name of the Cost behavior Manufacturers Statements Making Rental revenue forgone, $30,000 per year None None None Opportunity cost Direct materials cost, $80 per unit Variable Direct materials Product Rental cost of warehouse, $500 per Fixed None Period Rental cost of equipment, $4,000 Manufacturing per month Fixed overhead Product Direct labor cost, $60 per unit Variable Direct labor Product Depreciation of the space, Manufacturing $8,000 per year Fixed overhead Product Sunk cost Advertising cost, $50,000 per year Fixed None Period Supervisor's salary, $3,500 per Manufacturing month Fixed overhead Product Electricity for machines, $1.20 per Manufacturing unit Variable overhead Product Shipping cost, $9 per unit Variable None Period Return earned on investments, $3,000 per year None None None Opportunity cost
Exercise1-14 (30 minutes) Cost Classifications for: Name of the Cost (1) Predicting Cost behavior (2) Manufacturers (3) Preparing Financial Statements (4) Decision Making Rental revenue forgone, $30,000 per year None None None Opportunity cost Direct materials cost, $80 per unit Variable Direct materials Product Rental cost of warehouse, $500 per Fixed None Period Rental cost of equipment, $4,000 per month Fixed Manufacturing overhead Product Direct labor cost, $60 per unit Variable Direct labor Product Depreciation of the space, $8,000 per year Fixed Manufacturing overhead Product Sunk cost Advertising cost, $50,000 per year Fixed None Period Supervisor's salary, $3,500 per month Fixed Manufacturing overhead Product Electricity for machines, $1.20 per unit Variable Manufacturing overhead Product Shipping cost, $9 per unit Variable None Period Return earned on investments, $3,000 per year None None None Opportunity cost
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