Accounting first trimester questions.


3 of these type of questions ....

4. Graphical representation of costs

The normal range of activity is 2,200 to 2,600 units per week. Graph the following costs.


  • Material A — each unit of product uses 5 kg of material A, the price of which is $4 per kg.

  • Material B — each unit requires 10 kg of material B, the price of which is $2.50 per kg. This price drops to $2.25 if more than 25,000 kg are purchased in a week (assume no stocks are held).

  • Direct labor — each unit requires 10 minutes of labor and machine time. Ten employees work on the production line. They are paid $24 per hour for a 40-hour week whether they are fully occupied or not. If they have to work overtime, they receive $30 per hour.

  • Power for the machines costs $500 per week plus $3 per hour of machine running time.

  • The supervisor is paid $1,200 per week with a bonus of $160 for any week in which overtime is worked.

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    Could it please be done in the document answers with different color, Thanks 

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