Question

Giaph/Chart B D F H hei 1 K

Answer 1

Given that The vertical axes of the graphs represent total cost & the horizontal axes represents units produced during a calendax year | Annual depreciation of equipment, where the amount of depreciation charged is computed by Machine hours method. A) Machine hours increases with increase in production of unds, it is given that depreciation is computed by Machine housse Therfore Depreciation and units produced have dixect xelationship. lie increase in production leade to increase in depreciation) The graph Suitable is 'K' where it is increasing by increasing in production 2. Electricity bill - a flat fixed charge, plus a variable cost after a certain number of kilowatt brs are used, in which the quantity of kioh used varies proportionately with quantity of units produced. Fixed charge upto certain point and Variable cost based on production will be there after crossing the maximum point ie Flat line for fixed charge and afterwards it increase proportionately with increase in production The suitable graph is B

used 3 city water bill Thast 100.000 Galloss cou) less - $1000 flatfoo Next 10,000 gallons $0.003/ gallon Next 10.000 gallery Next 10000 9 allons It is flat rate used upto first 400,000 Gallons from there opwards, it is step up cost le for every 10,000 gallons, the cost/gallon is increasing A $2006/Sallon ved $0.009/31/1on used. A The suitable graph is "G where it is flat & stepup. 6 4. Directmatenals Given Direct material cost per unit decreased with each pound of material used with minimum cost/pu of $9.20. A. The cost unit decreases with increases in production subject to minimum price of $9.2/ unit А A The graph will be plotted in such a way that the cat will get reduced by increase in production subiect to minimum cost. The suitable graph is "&" where the cost is constant for some units and then it started reducing gradually with increase in production and then after it is flat where there is minimum cost.

s Annualdepreciation of equipment, where the amount is computed by straight line method, when the depreciation Schedule was prepared, it was anticipated that the absolescence factor would be greater than wear and tear factori A. As the depreciation is calculated by straight line method the units production will have no impact on it. It will remain same The suitable Graph is "I 6. Rent on a manufacturing plant donated by city, where the agreement calls for a fixed fee payment unless 2,00000 Labor hours are worked in which case no rent is paid. A. The rent is constant tipte 20000 babes hooss fixed rent payment if it works for less than 2,00000 Labor hours. Il plant works for more than 2,00 000 Labor hours, then the rent is zero" The suitable graph is 'L" where it is constant upto certain apaint of time and from there onwards, it met with X-axis

7 Salaries of repair personnel, where one person is needed for every 1000 machine hrs (or) Les Au for the first 1000 machine hyd, only one person is required and for the next 1000 bys (1001–2000 bred a persons are required: that means, the cost will be stopup cost and it will not increase with increase in production proportionately. The cost will increase in stepup starting The suitable graph is "f method from 8 Cost of direct materials used (Assume no quantity discounts) A. If there is no quantity discounts, the cost of materials increased proportionately with increase in producho The suitable graph is K 9 pent on a manufacturing plant donated by the County, where the agreement calls for rent of $100,000 to be rodited by ti for each direct manufacturing labor how worked in excess of 2,000 his, but a minimum rental fee of $20,000 must be paid

CSS Dote Page A. The minimum rent to be paid is $20,000. maximum rent to be paid is $1,00,000 It will get reduced by $1 be for each labor hour in excess of 200000 labor hours . The vent will be constant for 200000 laboy bors From then onwards # will start reducing subject to mimimum rent of $20,006 The suitabale graph is "c

Answer 2

Note: I got a different answer for number 4. It was J. I checked my homework online in pearson lab and J was correct. All the rest of the notes above were GREAT! And greatly appreciated.