Devry ACCT 301 Week 5 Homework Latest

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Devry ACCT 301 Week 5 Homework Latest

Week 5

Problem 1
Required:Identify each of the following as either a direct or indirect cost.
(20 points)
Direct or Indirect?
Material used in production
Salary of manufacturing supervisor
Wages of manufacturing worker
Telephone costs
Rent

Problem 2

Required: GH Company is trying to decide whether to replace a current piece of machinery with a new machine. Using the below data, determine the relevant costs of the old machine and the new machine. Should GH Company purchase the new machine?

(30 points)

Old Machine New machine

Original cost 1,00,000

Accumulated depreciation (50,000)

Book value 50,000

Market value (now) 25,000 30,000

Salvage value (in 5 years) 5,000 8,000

Annual depreciation expense 11,000

Operating expenses

Per year 9,000 4,500

Times number of years 4 4

Total operating expenses 36,000 18,000

 

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Devry ACCT 301 Week 5 Homework Latest

Best Devry ACCT 301 Week 5 Homework Latest

Devry ACCT 301 Week 5 Homework Latest