Information from the accounting system revealed the following:

Day 1 Day 2 Day 3 Day 4 Day 5 Materials

$ 20,000

$18,000

$ 22,000

$ 20,000

$ 20,000 Electricity 2,500 3,000 3,500 4,000 4,700 Maintenance 4,000 3,750 3,400 3,000 2,800 Total costs Pounds

$ 26,500

$24,750

$ 28,900

$ 27,000

$ 27,500 produced

^10,000

-9,000

-11,000

-10,000

-10,000 Cost per unit

$ 2.65

$ 2.75

$ 2.63

$ 2.70

$ 2.75 Which of the following statements best interprets this information?

A. The total costs are out of control.

B. The product costs have steadily increased be¬ cause of higher electricity costs.

C. Electricity costs have steadily increased because of lack of maintenance.

D. The unit costs reveal a significant operating prob¬ lem.

AppendixLO1