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The manager at the Boeing plant is looking at a monthly report of plant costs. He notices that the receiving activity costs vary substantially from
The manager at the Boeing plant is looking at a monthly report of plant costs. He notices that the receiving activity costs vary substantially from month to month and is interested in knowing more about why the total cost and unit cost of the receiving activity change. The number of parts received has ranged from 10,000 to 30,000 parts per month over the last several months. 1. Prepare a table that shows the cost of equipment, the cost of fuel, the total of equipment and fuel costs, and the cost per-part-received for 10,000 to 30,000 parts per month, using increments of 5,000 parts per month. 2. Prepare brief explanations of why the total and unit cost patterns change.
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