What is the amount of differential cost


Response to the following problem:

Canyon Ferry Lumber Company incurs a cost of $180 per hundred board feet in processing certain "rough-cut" lumber, which it sells for $275 per hundred board feet. An alternative is to produce a "finished cut" at a total processing cost of $300 per hundred board feet, which can be sold for $450 per hundred board feet.

What is the amount of

(a) the differential revenue,

(b) differential cost, and

(c) differential income for processing rough-cut lumber into finished cut?

Request for Solution File

Ask an Expert for Answer!!
Cost Accounting: What is the amount of differential cost
Reference No:- TGS02121231

Expected delivery within 24 Hours