Solution-Is the cost of design and making of silk-screen

Is the cost of design and making of silk-screen

Assignment Help Cost Accounting

Reference no: EM132562070

Information:

Cost objective : t-shirt printing service
Customer ordered 600 shirts
Cost of Design and making of silk-screen $2,000 ( for 600 shirts)

The silk-screen is custom-made with the design as required by customer and is needed to print the customer's design and organisation logo onto the t-shirts. It is a one-off cost. An error was committed when making the silk-screen, resulting in 40 t-shirts being printed with a slightly wrong design. The silk-screen had to be corrected at a cost of $100.

Question:

Question 1: Is the cost of Design and making of silk-screen ($100), a fixed cost or variable cost ? Why?

Reference no: EM132562070

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Is the cost of design and making of silk-screen

Reference no: EM132562070

Reference no: EM132562070

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