10-18 Various cost-behavior patterns. (CPA, adaptad) Select the graph that matches the numbered ma acturing ebat data (requirements 1-8), Indicats by letter which graph best fits the situation or item described. D H The vertical axes of the graphs represent total cost, and the horizontal axas represent units produced dur- ing a calendar year. In each case, the zero point of dollars and production is at the intersection of the two axes. The graphs may be used more than once. 1. Annual depreciation of equipment, where the amount of depreciation charged is computed by the machine-hours method. 2. Bectricity bill-a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are used, In which the quantity of kilowatt-hours used varies proportionately with quantity of units produced. 3. City water bill, which is computed as follows: First 1,000,000 gallons or less $1,000 flat fee Next 10,000 gallons $0.003 per gallon used Next 10,000 gallons $0.008 par gallon used Next 10,000 gallons and so on $0.009 par gallon used and so on The gallons of water used vary proportionately with the quantity of production output. 4. Cost of direct materials, where direct material cost per unit produced decreases with each pound of material used (for example, if 1 pound is used, the cost is $10; if 2 pounds are used, the cost is $19.98; if 3 pounds are used, the cost is $29.94), with a minimum cost per unit of $9.20. 5. Annual depreciation of equipment, where the amount is computed by the straight-line method. When the depreciation schedule was prepared, it was anticipated that the obsolescence factor would be greater than the wear-and-tear factor. 6. Rent on a manufacturing plant donated by the city, where the agreement calls for a fixed-fee payment unless 200,000 labor-hours are worked, in which case no rent is paid. 7. Salaries of repair personnel, where one person is needed for every 1,000 machine-hours or less (that is, 0 to 1,000 hours requires one person, 4,001 to 2,000 hours requires two people, and so on). 8. Cost of direct materials used (assume no quantity discounts). 9 Rent on a manufacturing plant donated by the county, where the agreement calls for rant of $100,000 to be reduced by $1 for each direct manufacturing labor-hour worked in excess of 200,000 hours, but a minimum rental fee of $20,000 must be paid.