Question
Information from the accounting system revealed the following: Day 1 Day 2 Day 3 Day 4 Day 5 . Materials $20,000 $19,000 $21,500 $21,000 $21,000
Information from the accounting system revealed the following:
Day 1 Day 2 Day 3 Day 4 Day 5 .
Materials $20,000 $19,000 $21,500 $21,000 $21,000
Electricity 2,500 3,000 4,000 4,900 5,200
Maintenance 4,000 3,900 4,000 3,900 4,200
Total costs $26,500 $25,900 $29,500 $29,800 $30,400
Pounds produced 10,000 9,000 10,000 10,000 10,000
Cost per unit $ 2.65 $ 2.88 $ 2.95 $ 2.98 $ 3.04
Which of the following statements best interprets the information?
A. The total costs are out of control.
B. The total costs have steadily increased because of higher electricity costs.
C. Electricity costs have steadily increased because of lack of maintenance.
D. The unit costs reveal a significant operating problem.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started