1. Manufacturing Overhead
Product Cost
Period
Name of the Cost
Variable Cost
Fixed Cost
Direct Materials
Direct Labor
Manufacturing Overhead
(Selling and Admin) Cost
Opportunity Cost
Sunk Cost
Rental revenue forgone, $30,000 per year X
Direct materials cost, $80 per unit
Rental cost of warehouse, $500 per month
Rental cost of equipment, $4,000 per month
Direct labor cost, $60 per unit
Depreciation of the annex space, $8,000 per year
Advertising cost, $50,000 per year
Supervisor's salary, $1,500 per month
Electricity for machines, $1.20 per unit
Shipping cost, $9 per unit
Return earned on investments, $3,000 per year