Yang Manufacturing, Which Uses the High-Low Method, Makes a Product

question 27

Multiple Choice

Yang Manufacturing, which uses the high-low method, makes a product called Yin. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. $\begin{array}{|l|l|l|l|l|l|l|l|}\hline&\text { Type A}&&\text { Type B}&&\text { Type C}&&\text { Total } \\\hline 5,000 \text { units } & \$ 4 & & \$ 9 && \$ 4 & & \$ 17 \\\hline 7.500 \text { units } & \$ 4 && \$ 6 & &\$ 3 & & \$ 13 \\\hline\end{array}$ The cost types shown above are identified by behaviour as: $\begin{array}{l}\begin{array}{|l|l}\hline&\text { Type A }\\\hline 1 & \text { Fixed } \\\hline 2 & \text { Fixcd } \\\hline 3 & \text { Variable } \\\hline 4 & \text { Variable } \\\hline 5 & \text { Semivariable } \\\hline\end{array}\begin{array}{|l|l}\hline&{\text { Type B }} \\\hline &\text { Variable } \\\hline & \text { Semivariable } \\\hline &\text { Scmivariable } \\\hline &\text { Fixed } \\\hline & \text { Variable } \\\hline\end{array}\begin{array}{|l|l|}\hline&{\text { Type C }} \\\hline &\text { Semivariable } \\\hline &\text { Variable } \\\hline & \text { Fixed } \\\hline &\text { Semivariable } \\\hline &\text { Fixed }\\\hline\end{array}\end{array}$

• A)1
• B)2
• C)3
• D)4
• E)5

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Definitions:

Arbitration

A method of dispute resolution where an impartial third party, the arbitrator, makes a decision that is usually binding on the parties.

Grievance Procedures

Formalized means by which employees can submit complaints or disputes for resolution by the organization, following specific steps.

Union Steward

An elected representative of union members in the workplace, responsible for enforcing the collective bargaining agreement and assisting members with grievances.

Solicit

To request or seek for something, often by direct appeal or plea.