2. For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of unitsproduced increases. Not all graph have to be used and a graph can be used more than once.Graph 1Graph 2Graph 3° Activity BaseO Activity Baseo Activity BaseGraph 4Graph 5O Activity BaseO Activity BaseFIGURE 20.2Rent of warehouse of $10,000 per monthPer-unit straight line depreciation costsa.b.с.Per-unit cost of direct materialsd.Electricity costs of $5,000 per month plus $.0004 per kilawatt-hourе.Total direct labor cost

a. Graph 3, because the rent is a fixed cost that will not change so each month a fixed amount of…

Answered: For each of the following costs,…

For each of the following costs, identify the cost graph that best illustrates its cost behavior a duced increases. Not all graph have to be used and a graph can be used more than once.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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Question

2. For each of the following costs, identify the cost graph that best illustrates its cost behavior as the number of units
produced increases. Not all graph have to be used and a graph can be used more than once.
Graph 1
Graph 2
Graph 3
° Activity Base
O Activity Base
o Activity Base
Graph 4
Graph 5
O Activity Base
O Activity Base
FIGURE 20.2
Rent of warehouse of $10,000 per month
Per-unit straight line depreciation costs
a.
b.
с.
Per-unit cost of direct materials
d.
Electricity costs of $5,000 per month plus $.0004 per kilawatt-hour
е.
Total direct labor cost

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