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Problem 1 For each of the following situations, select the most appropriate cost behavior pattern from the menu of graphs on the next page. You
Problem 1 For each of the following situations, select the most appropriate cost behavior pattern from the menu of graphs on the next page. You may use a graph more than once, and you may or may not use all the graphs. In each graph, the y-axis is the cost measure, the x-axis is the activity measure, and the line represents the cost behavior. Situation Corresponding Graph A. Variable cost per unit B. Total fixed costs C. Total mixed costs D. Fixed cost per unit E. Total costs when employees are paid $15 per hour for the first 40 hours worked each week and $20 for each additional hour F. Total costs when employees are paid $15 per hour and guaranteed a minimum weekly wage of $300 G. Total cost per day when a consultant is paid $200 per hour with a maximum daily fee of $1,000 H. Total variable costs I. Total costs for salaries of social workers where each social worker can handle a maximum of 25 cases J. A water bill where a flat fee of $800 is charged for the first 100,000 gallons and additional water costs $0.005 per gallon K. Total materials costs L. Rent on exhibit space at a convention Problem 1 (continued) Use these graphs to match the situation descriptions on the previous page to their cost behavior. (1) (2) (3) (4) (5) (6) (7) (8) Some other relationship (9) (10) (11) (12)
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