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3. Identify some factors that might cause variable costs per unit to change if the actual level of activity in a given month falls above
3. Identify some factors that might cause variable costs per unit to change if the actual level of activity in a given month falls above or below the relevant range. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answers and double click the box with the question mark to empty the box for a wrong answers.) O Direct material costs per unit could decrease if quantity discounts are received from the manufacturer for larger order quantities. 2 Direct material costs could increase if quantity discounts currently being received are lost if order quantities decrease significantly. ? Direct labour costs per unit could increase if activity levels increase and installations have to be completed using more expensive overtime hours. 2 Direct labour costs per unit could increase if activity levels decrease and less experienced, and lower paid, installers are laid off. 7 Direct labour costs per unit could decrease as the number of installations increases due to the effects of learning (i.e., the time required for each installation may decrease with experience). 2 Direct material costs per unit could increase if quantity discounts are received from the manufacturer for larger order quantities. 2 Direct material costs could decrease if quantity discounts currently being received are lost if order quantities decrease significantly
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