Jackie Fox owns and operates Platinum Transport Co. During the past year, Jackie incurred the following costs related to an 18-wheel truck:1. Changed engine oil.2. Installed a television in the sleeping compartment of the truck.3. Installed a wind deflector on top of the cab to increase fuel mileage.4. Modified the factory-installed turbo charger with a special-order kit designed to add 50 more horsepower to the engine performance.5. Replaced a headlight that had burned out.6. Replaced a shock absorber that had worn out.7. Replaced fog and cab light bulbs.8. Replaced the hydraulic brake system that had begun to fail during his latest trip through the Rocky Mountains.9. Removed the old radio and replaced it with a new communications module.10. Replaced the old radar detector with a newer model that is fastened to the truck with a locking device that prevents its removal.Classify each of the costs as a capital expenditure or a revenue expenditure.

True Flight Golf manufacturers a popular shaft for golf clubs. Its trade secret is a unique process for weaving high-tension wire into the center of the shaft such that energy is accumulated during the swing and released at impact. A specialized machine costing $3,000,000 is utilized in the manufacturing process. The machine has a 3-year life and no salvage value. True Flight uses straight-line depreciation. During the year, 25,000 shafts were produced, and the company was operating at full capacity. $700,000 of wire was used during the year. For the two noted cost items, how much was variable cost per unit and how much was fixed cost per unit?

Dorman company purchased a new machine for its production process. The following costs were incurred for the new machine. Training costs for workers who will operate the machine $15,000 Wages paid to workers who operate the machine during production 109,000 Ordinary repairs to the machine before the first production run 1,000 1 Cost of platform used to properly secure the machine 30,000 Costs of tests run which took place before the first production run 8,000 WHICH COSTS SHOULD BE ADDED TO THE COST OF MACHINE?

Alter's Home Center (AHC) sells renovation and remodeling products to both contractors and individual home owners. One of the services AHC offers is delivery of the purchased products to the customer's work site. Because not all customers take advantage of the delivery service option, ACH adds 10 percent to the cost of the products purchased to cover the delivery cost. A business intern spent the summer at ACH. The intern's assignment was to analyze the delivery service and recommend a better way to charge customers for using it. The intern, who had studied activity-based costing, identified the following activities and the data related to them: Activity Cost Driver Annual Cost Annual Driver Volume Picking order Number of items $ 286,000 357,500 items Delivering order Number of orders 522,500 27,500 orders Handling complaints Number of complaints 32,400 135 complaints Total delivery cost   $ 840,900     The intern selected two customers, who were frequent customers, to…

Holiday Laboratories purchased a high-speed industrial centrifuge at a cost of $440,000. Shipping costs totaled $12,000. Foundation work to house the centrifuge cost $7,700. An additional water line had to be run to the equipment at a cost of $3,000. Labor and testing costs totaled $4,100. Materials used up in testing cost $3,800. (Leave no cells blank. Enter 0 where needed.)   a. What is the total cost of the equipment?   b. How much of this amount should be expensed immediately?

Chip and Dale run separate logging companies in the same forest. Both pollute the river flowing through the forest with debris from their work. In the table below, the first row shows the current level of debris that makes its way into the river from their work. The following rows show how much it would cost each logger to reduce its pollution by additional increments of 10 pounds. If the government imposes a pollution tax of $7 for each 10 pounds of debris, total pollution will fall by. pounds, at a total cost of Chip Dale Current debris in pounds 60 80 Cost of reducing debris by 10 pounds $5 $2 Cost of reducing debris by a second 10 pounds $10 $4 Cost of reducing debris by a third $15 $6 10 pounds Cost of reducing debris by a fourth 10 pounds $20 $8 Cost of reducing debris by a fifth $25 $10 10 pounds a) 40, $28