Stallings Company provides you with a summary of its total budgeted production costs at three production levels:

Required:

a. Indicate the cost behavior for Costs A through D.

b. What would the total budgeted cost be for Costs A and C if the company produces 2,500 units?

c. Give an example of a production cost that could have the same type of behavior as each of Costs A through D.

Transcribed Image Text:

Volume in Units 1,000 2,000 3,000 Cost A..... $5,000 $5,000 $5,000 Cost B.. 1,400 1,800 2,200 Cost C. 3,000 6,000 9,000 Cost D... 2,000 2,000 2,500