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The farm has 40 acres of land devoted to growing Peppers, Spinach, and Corn. The cost associated with growing these crops are as follows: Acres
The farm has 40 acres of land devoted to growing Peppers, Spinach, and Corn. The cost associated with growing these crops are as follows:
| Acres Planted | |
| Peppers | 5 |
| Spinach | 10 |
| Corn | 25 |
| Direct Costs | |
| Pepper Seeds | $ 600 |
| Spinach Seeds | $ 2,300 |
| Corn Seeds | $ 1,100 |
| Total Direct Costs | $ 4,000 |
| Indirect Costs | |
| Land Lease - 40 acres | $ 35,000 |
| Planting Labor | $ 30,000 |
| Harvesting Labor | $ 50,000 |
| Farm Equipment Lease | $ 15,000 |
| Organic Fertilizer | $ 10,000 |
| Total Indirect Costs | $ 140,000 |
| Total Costs | $ 144,000 |
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Horngrens Financial and Managerial Accounting
Authors: Tracie L. Nobles, Brenda L. Mattison, Ella Mae Matsumura
5th edition
978-0133866292
