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Social ScienceIdentify Cost GraphsThe following cost graphs illustrate various types of cost behavior:Cost Graph OneCost Graph Two0Total Units Produced0Total Units ProducedCost Graph ThreeCost Graph Four0Total Units ProducedTotal Units Produced For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases:a. Total direct materials costb. Electricity costs of $1,000 per month plus $0.10 per kilowatt-hourc. Per-unit cost of straight-line depreciation on factory equipmentd. Salary of quality control supervisor, $20,000 per monthe. Per-unit direct labor cost
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Identify Cost Graphs The following cost graphs illustrate various types of cost behavior: Cost Graph One Cost Graph Two 0 Total Units Produced 0 Total Units Produced Cost Graph Three Cost Graph Four 0 Total Units Produced Total Units Produced
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For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units produced increases: a. Total direct materials cost b. Electricity costs of $1,000 per month plus $0.10 per kilowatt-hour c. Per-unit cost of straight-line depreciation on factory equipment d. Salary of quality control supervisor, $20,000 per month e. Per-unit direct labor cost
Expert Answer
a. Total direct material cost- It will be Cost graph four as per the question, because with each additional unit produced on x axis , the cost would increase on Y axis simaltaneously.
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y axis- cost x axis- total unit produced
b. Electricity cost $ 1000 per month per $ 0.10 per kilowatt - hour- It will be cost graph two-
This is a example of semi variable cost , where some portion of cost is fixed irrespective of the production and then the cost increases with every additional hour used for production.
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y axis- cost x axis- units produced
c. Per unit cost of straight line depreaciation on equipment- it will be cost graph three as per the question
The formula for per unit cost of straight line depreciation is = Total fixed cost - salvage value/ total est...
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Cost per Unit (S) Level of Activity acowtancy.com
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