Match Each of the Following Costs with the Graph (A-E)

question 80

Short Answer

Match each of the following costs with the graph (a-e) that best portrays its cost behavior as the number of units produced and sold increases.
-Total salaries of quality control supervisors (One supervisor must be added for each additional work shift.)
A)Graph 1
B)Graph 2
C)Graph 3
D)Graph 4
E)Graph 5

• A)Graph 1
• B)Graph 2
• C)Graph 3
• D)Graph 4
• E)Graph 5

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Definitions:

Predetermined Overhead Rate

A rate calculated before the start of a period, used to allocate overhead costs to products based on a chosen allocation base, such as labor hours or machine hours.

Manufacturing Overhead

All indirect costs associated with the production process, such as utilities, maintenance, and salaries for management.

Selling Price

The amount for which a product or service is sold to the customer, which may include cost, overheads, and profit margin.

Variable Manufacturing Overhead

Expenses related to manufacturing that fluctuate with production volume, including costs for supplies and variable labor.