Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes

image text in transcribed
The cost behavior patterns below are lettered A through H. The vertical axes of the graphs represent total dollars of expense, and the horizontal axes represent production in units, machine hours, or direct labor hours. In each case, the zero point is at the intersection of the two axes. Each graph may be used no more than once. Select the graph that matches the lettered cost described here. a. Depreciation of equipment-the amount of depreciation charged is computed based on the number of machine hours that the equipment was operated. b. Electricity bill-flat fixed charge, plus a variable cost after a certain number of kilowatt hours are used. c. City water bill-computed as follows: d. Depreciation of equipment-the amount is computed by the straight-line method. e. Rent on a factory building donated by the city-the agreement calls for a fixed fee payment, unless 200,000 labor hours are worked, in which case no rent need be paid. f. Salaries of repair workers-one repair worker is needed for every 1,000 machine hours or less (i.e., 0 to 1,000 hours requires one repair worker, 1,001 to 2,000 hours requires two repair workers, etc.)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The People Policies Audit

Authors: Maurice A. Phelps

1st Edition

1907766049, 978-1907766046

Students also viewed these Accounting questions