Select the graph that matches the numbered manufacturing cost data. Indicate by letter which graph

Best fits the situation or item described. ( (Click to view the graphs.)

The vertical axes of the graphs represent total cost, and the horizontal axes represent units produced

during 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.

Electricity bill - a flat fixed charge, plus a variable cost after a certain number of kilowatt-hours are L

in which the quantity of kilowatt-hours used varies proportionately with quantity of units produced.

City water bill, which is computed as follows:

First 1,000,000 gallons or less $1,000 flat fee

Next 10,000 gallons

Next 10,000 gallons

Next 10,000 gallons and so on

$0.003 per gallon used

$0.006 per gallon used

$0.009 per 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 decreases with each pound of material u: example, if 1 pound is used, the cost is $10; if 2 pounds are used, the cost is $19.98; if 3 pounds are 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. Whe depreciation schedule was prepared, it was anticipated that the obsolescence factor would be great1 the wear-and-tear factor.

6. Rent on a manufacturing plant donated by the city, where the agreement calls for a fixed-fee payme

unless 200,000 labor-hours are worked, in which case no rent is paid.

Salaries of repair personnel, where one person is needed for every 1,000 machine-hours or less (th to 1,000 hours requires one person, 1,001 to 2,000 hours requires two people, and so on.)

Cost of direct materials used (assume no quantity discounts.)

Rent on a manufacturing plant donated by the county, where the agreement calls for rent of $100,0C reduced by $1 for each direct manufacturing labor-hour worked in excess of 200,000 hours, but a IT rental fee of $20,000 must be paid.

Graph/Chart

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