units produced: Direct Labor: Supervision:

0-500 $25,000 $ 40,000

501-1000 50,000 40,000

1001-1500 75000 40,000

1501-2000 100,000 80,000

2001-2500 125,000 80,000

2501-3000 150,000 80,000

3001-3500 175,000 120,000

3501-4000 200,000 120,000

1) Prepare two graphs one that shows relationship between direct labor cost and units produced and one that illustrates relationship between cost of supervision and units produced. Let cost be vertical and units produced horizontal.

2) How would you classify each cost?

3) Suppose the normal range of activity is between 2,400 and 2,450 units and the number of machinists is currently hired to support this level of activity. Suppose in the next year the production is expected to increase by 400 units. How much will the cost of indirect labor increase? Cost of supervision.

Answer in excel also give explanation on how you made the graph for my learning purposes