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Exercise 2-9 (30 minutes)
Name of the Cost
Variable
Cost
Fixed
Cost
Product Cost
Period
(Selling and
Admin.) 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
Exercise 2-13 (continued)
3. The scattergraph appears below.
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
22,000
24,000
26,000
28,000
30,000
32,000
0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000
Cost of X-Rays
Number of X-Rays Taken
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