Current piece of machinery

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Reference no: EM13745439

"Problem 1

Required: Identify each of the following as either a direct or indirect cost. "

Material used in production Direct

Salary of manufacturing supervisor Indirect
Wages of manufacturing worker Direct
Telephone costs Indirect
Rent Indirect

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?

Reference no: EM13745439

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