ACT 202 Assignment # 1

North South Industries is a renowned car manufacturer. They make three different
lines of cars: Sedan, SUV and Luxury Sports. Below is a list of cost that they incur in
their factory and administration. Identify the type of each of those costs. Whether
they are Fixed or Variable; Product or Period; if product then whether they
are Direct Material, Direct Labor or Overhead; If period then whether they
are Administrative or Selling; Sunk cost or Opportunity cost.
1. The tires that go into the sedan each cost BDT 2000.
2. To paint each door of the LUXURY Sports model, it takes BDT 5000.
3. Electricity bill in factory is at least BDT 5000. If it crosses that then per Mega
Watt is an additional BDT 2000.
4. Factory supervisors salary is BDT 10,000 per month.
5. Wages and salaries of the department that handles customer billings is BDT
90,000 per month.
6. Rent of the corporate headquarter is BDT 500,000.
7. North South bought a custom machine for the factory for BDT 10,000. But
situation changed and now the Machine can be sold for 12,000.
8. Health insurance premiums for factory workers are BDT 50,000 per month.
9. The cost of the solder to make electrical line joints in the SUV is BDT 25 per
car.
10.Instead of using the factory warehouse if North South rented it, they would
have made a rent of BDT 500,000 per month. However, by using it, they
estimate they get a benefit of BDT 800,000 per month.

GOOD LUCK