BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 21, Problem 21.2EX
Textbook Problem

Identify cost graphs

The following cost graphs illustrate various types of cost behavior:

Chapter 21, Problem 21.2EX, Identify cost graphs The following cost graphs illustrate various types of cost behavior: a. Total

a. Total direct materials cost

b. Electricity costs of $1,000 per month plus 50.10 per kilowatt-hour

c. Per-unit cost of straight-line depreciation on factory equipment

d. Salary of quality control supervisor, 520,000 per month

e. Per-unit direct labor cost

Expert Solution
To determine

Cost Behavior: It refers to the method in which a cost changes with respect to the changes in its related activities. This method helps the management in estimating costs for decision making and predict future profits.

To identify: the cost graph for each of the given costs that best illustrates its cost behavior as the number of units produced increases.

Explanation of Solution

Identify the cost graph for each of the given costs that best illustrates its cost behavior as the number of units produced increases.

a.

For total direct materials cost, the cost graph is four. It is a variable cost. The variable cost that starts at the point $0 on the vertical axis (total cost) increases in an upward direction with the increase in the number of units produced shown on the horizontal axis.

b.

For electricity costs of $1,000 per month plus $0.10 per kilowatt-hour, the cost graph is two. It is a mixed cost that has both the features of fixed and variable cost. The total cost starts from the fixed cost of $10,000, increasing in an upward direction at the rate of $0.10 per-kilowatt-hour on the vertical axis to the maximum relevant range of the units produced per hour on the horizontal axis.

c.

For per-unit cost of straight-line depreciation on factory equipment, the cost graph is three...

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 21 Solutions

Accounting
Show all chapter solutions
Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - High-low method The manufacturing costs of...Ch. 21 - Contribution margin Lanning Company sells 160,000...Ch. 21 - Contribution margin Weidner Company sells 22,000...Ch. 21 - Break-even point Bigelow Inc. sells a product for...Ch. 21 - Break-even point Elrod Inc. sells a product for 75...Ch. 21 - Target profit Ramirez Inc. sells a product for 80...Ch. 21 - Target profit Scrushy Company sells a product for...Ch. 21 - Sales mix and break-even analysis Wide Open...Ch. 21 - Sales mix and break-even analysis Einhorn Company...Ch. 21 - Operating leverage SungSam Enterprises reports the...Ch. 21 - Operating leverage Westminster Co. reports the...Ch. 21 - Margin of safety Liu Inc. has sales of 48,500,000,...Ch. 21 - Margin of safety Junck Company has sales of...Ch. 21 - Classify costs Following is a list of various...Ch. 21 - Identify cost graphs The following cost graphs...Ch. 21 - Identify activity bases For a major university,...Ch. 21 - Identify activity bases From the following list of...Ch. 21 - Identify fixed and variable costs Intuit Inc...Ch. 21 - Relevant range and fixed and variable costs Vogel...Ch. 21 - High-low method Ziegler Inc. has decided to use...Ch. 21 - High-low method for a service company Boston...Ch. 21 - Contribution margin ratio a. Yountz Company...Ch. 21 - Contribution margin and contribution margin ratio...Ch. 21 - Break-even sales and sales to realize income from...Ch. 21 - Break-even sales Anheuser-Busch InBev Companies,...Ch. 21 - Break even sales Currently, the unit .selling...Ch. 21 - Break-even analysis The Junior League of...Ch. 21 - Break-even analysis Media outlets such as ESPN and...Ch. 21 - Break-even analysis for a service company Sprint...Ch. 21 - Cost-volume-profit chart For the coming year,...Ch. 21 - Profit-volume chart Using the data for Loudermilk...Ch. 21 - Break-even chart Name the following chart and...Ch. 21 - Break-even chart Name the following chart and...Ch. 21 - Sales mix and break-even sales Dragon Sports Inc....Ch. 21 - Break-even sales and sales mix for a service...Ch. 21 - Margin of safety a. If Canace Company, with a...Ch. 21 - Break-even and margin of safety relationships At a...Ch. 21 - Operating leverage Beck Inc. and Bryant Inc. have...Ch. 21 - Items on variable costing income statement In the...Ch. 21 - Variable costing income statement On July 31, the...Ch. 21 - Appendix Absorption costing income statement On...Ch. 21 - Classify costs Seymour Clothing Co. manufactures a...Ch. 21 - Break-even sales under present and proposed...Ch. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Break-even sales and cost-volume-profit chart Last...Ch. 21 - Sales mix and break-even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Classify costs Cromwell Furniture Company...Ch. 21 - Break-even sales under present and proposed...Ch. 21 - Break-even sales and cost-volume-profit chart For...Ch. 21 - Break-even sales and cost-volume-profit chart Last...Ch. 21 - Sales mix and break even sales Data related to the...Ch. 21 - Contribution margin, break-even sales,...Ch. 21 - Ethics in Action Edward Seymour is a financial...Ch. 21 - Communication Sun Airlines is a commercial airline...Ch. 21 - Break-even analysis Somerset Inc. has finished a...Ch. 21 - Variable costs and activity bases in decision...Ch. 21 - Variable costs and activity bases in decision...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Use a production possibilities frontier to describe the idea of efficiency.

Principles of Microeconomics (MindTap Course List)

What is a LAN?

Accounting Information Systems

Explain the difference between committed and discretionary fixed costs. Give examples of each.

Managerial Accounting: The Cornerstone of Business Decision-Making

Explain how payroll fraud can be prevented.

College Accounting (Book Only): A Career Approach

Differentiate between dealer markets and stock markets that have a physical location.

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)