100000-500005000025000 300005000 8000110009000 45004 436000 18000Problem 1 Probl

    100000-500005000025000
    300005000
    8000110009000
    45004
    436000
    18000Problem 1
    Problem 2
    Direct or Indirect?
    (20 points)
    (30 points)
    Salary of manufacturing supervisor
    Wages of manufacturing worker
    Telephone costs
    Rent
    Material used in production
    Old Machine
    Original cost
    Accumulated depreciation
    Market value (now)
    Book value
    Salvage value (in 5 years)
    Annual depreciation expense
    Times number of years
    New machine
    Required:
    GH Company is trying to decide whether to replace a current piece of machinery with a new machine.
    100000-500005000025000
    300005000
    8000110009000
    45004
    436000
    18000Problem 1
    Problem 2
    Direct or Indirect?
    (20 points)
    (30 points)
    Salary of manufacturing supervisor
    Wages of manufacturing worker
    Telephone costs
    Rent
    Material used in production
    Old Machine
    Original cost
    Accumulated depreciation
    Market value (now)
    Book value
    Salvage value (in 5 years)
    Annual depreciation expense
    Times number of years
    New machine
    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?
    Total operating expenses
    Per year
    Operating expenses
    Required:
    Identify each of the following as either a direct or indirect cost.

    Attachments:

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