Below is the list of different costs associated with the new company down the extreme left column $($under "Name of the Cost"$).$

Select "Yes" under each heading that is applicable to the type of cost involved. Also, select $"$No$"$ under each heading that is not

applicable to the type of cost involved. There may be "Yes" under several column headings for a single cost. $($For example, a cost may

be a fixed cost, a period cost, and a sunk cost; you would select "Yes" under each of these headings opposite the cost.$)$

Show correct answers

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Under the "Variable Cost" column, list only those costs that would be variable with respect to the number of units of pottery that are

produced and sold.

NOTE: Opportunity cost is a special category, and to avoid confusion, do not attempt to classify the cost in any other way except as an

opportunity cost.

Product Cost

Period $($Selling

and

Administrative$)$

Cost

Name of the Cost

Variable

Cost

Fixed Cost

Direct

Materials

Direct

Labour

Manufacturing

Overhead

Opportunity

Cost

Sunk Cost

Staci's present salary, $$70,000$ per year

Building rent, $$2,500$ per month

Clay and glaze, $$3\mathrm{.}50$ per pot

Wages of production workers, $$12$ per pot

Advertising, $$2,600$ per month

Sales commission, $$4$ per pot

Rent of production equipment, $$1,300$ per month

Legal and filing fees, $$5,000$

Rent of sales office, $$1,250$ per month

Phone for taking orders,$$40$ per month

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X

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

$+$

X Yes

X

Yes

YeS

$+$

$+$

X

X

X$)$

$+$

YeS

YeS

$+$

X

X

X

X

X

X

Yes

X

$+$

X

Yes

X

X

X

X

$+$

K