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The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cast, and the horizontal axis represents activity output. Required: For each of the fotlowing situations, choose the graph fram the group at-1 that best lilustrates the cost pstern imvolved. Aso, for each situation, identify the driver that measures activity output. 1. The cost of power ahen a fixed fee of $500 per msnth is charged pius an additional charge of $0.12 per kiowatt-hour used. 2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of sales made wp to total annual sales of 5500,000 , and 7 percent of sales above 5500,000 . 3. A part purchased frem an outside suppler costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in eacess of 3,600 units. 4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs). 2 more Check My Work uses remaining Required: situation, identify the driver that measures activity output. 1. The cost of power when a fixed fee of 5500 per month as charged plut an add bonal charge of fo.12. ger kifowatthour used. 2. Commissions paid to sales representatives. Commissons are paid at the rate of 5 sercent def saies mase ug to total anduli saies of 5500,000, and 7 percent of sales above $500,000. 3. A part purchased from an outside suppler costs $12 per part for the first 3,000 parts and slo per part for all parts purchased in excess of 3,000 units 4. The cost of surgical gloves, which are purchased in incremeris of 100 units (stoves come in bouns of 360 pairs). 5. The cost of tution at a local cellege that charges 3250 per orede hour up to 15 credit houn. Hours takan in ercess of 15 are free. 6. The cost of tution at another college that charges $4,500 per semester for any wourse isad rangng tram 12 to 15 credit hours. 5 tudents taking fewer than 12 credt bours are charged 5375 per vedit hour. Students taing more than 16 vedt tours are charged 54.500 plus $300 per credt thour in excess of 16 . farsing its effectiveneth. 8. Purchase of diagnostics equigment by a company for inspection of incuming sriden. 9. Use of disposable gowns by patients in a hospital. 10. Cont of labor at a local fast-food restaurant. Three employees are aways on dury funing morwing houng more empioyees can be called in during periods of heavy demand to work on an "as-heeded" basis. 11. A manufacturer found that the maintenance cost of its heavy machinery was tied so the age of the epuipment. Experience indicated that the maintenance cost increased at an increasing rate as the equigment aped, The graphs below represent cost bebavior patterns that might occur in a company's cost structure. The verticai axis represents total cost, and the horizontal axis represents activity output. 3 more Check My Work uses remaining For each of the following situations, choose the graph from the group a-l that best illustrates the cost pattern involved. Also, for each situation, identity the diver that measures activity output. 1. The cost of power when a fixed fee of $500 per month is charged plus an additional charge of $0.12 per kilowatt-hour used. 2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of saies made up to total annual sales of 5500,000 , and 7 percent of saies above $500,000. 3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in excess of 3,000 ialte. 4. The cost of surgical gloves, which are purchased in increments of 100 units (gioves come in boxes of 100 pairs). 4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs). 5. The cost of tuition at a local college that charges $250 per credit hour up to-15 credit hours. Hours taken in excess of 15 are free. 6. The cost of tuition at another coliege that charges $4,500 per semester for any course load ranging from 12 to 16 credit hours. Students taking fewer than 12 credi hours are charged $375 per credit hour, Students taking more than 16 credit hours are charged $4,500 plus $300 per credit hour in excess of 16 . 7. A beauty shop's purchase of soaking solution to remove artificial nails. Each jar of solution can soak off approximately 50 nails before iosing its effectiveness. 8. Purchase of diagnostics equipment by a company for inspection of incoming orders. 9. Use of disposable gowns by patients in a hospital. 10. Cost of labor at a focal fast-food restaurant. Three employees are always on duty during working hours; more employees can be called in during periods of heavy demand to work on an "as-needed" basis. 11. A manufacturer found that the maintenance cost of its heavy machinery was tied to the age of the equipment. Experience indicated that the maintenance cost increased at an increasing rate as the equipment aged. The graphs below represent cost behavior patterns that might occur in a company's cost structure. The vertical axis represents total cast, and the horizontal axis represents activity output. Required: For each of the fotlowing situations, choose the graph fram the group at-1 that best lilustrates the cost pstern imvolved. Aso, for each situation, identify the driver that measures activity output. 1. The cost of power ahen a fixed fee of $500 per msnth is charged pius an additional charge of $0.12 per kiowatt-hour used. 2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of sales made wp to total annual sales of 5500,000 , and 7 percent of sales above 5500,000 . 3. A part purchased frem an outside suppler costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in eacess of 3,600 units. 4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs). 2 more Check My Work uses remaining Required: situation, identify the driver that measures activity output. 1. The cost of power when a fixed fee of 5500 per month as charged plut an add bonal charge of fo.12. ger kifowatthour used. 2. Commissions paid to sales representatives. Commissons are paid at the rate of 5 sercent def saies mase ug to total anduli saies of 5500,000, and 7 percent of sales above $500,000. 3. A part purchased from an outside suppler costs $12 per part for the first 3,000 parts and slo per part for all parts purchased in excess of 3,000 units 4. The cost of surgical gloves, which are purchased in incremeris of 100 units (stoves come in bouns of 360 pairs). 5. The cost of tution at a local cellege that charges 3250 per orede hour up to 15 credit houn. Hours takan in ercess of 15 are free. 6. The cost of tution at another college that charges $4,500 per semester for any wourse isad rangng tram 12 to 15 credit hours. 5 tudents taking fewer than 12 credt bours are charged 5375 per vedit hour. Students taing more than 16 vedt tours are charged 54.500 plus $300 per credt thour in excess of 16 . farsing its effectiveneth. 8. Purchase of diagnostics equigment by a company for inspection of incuming sriden. 9. Use of disposable gowns by patients in a hospital. 10. Cont of labor at a local fast-food restaurant. Three employees are aways on dury funing morwing houng more empioyees can be called in during periods of heavy demand to work on an "as-heeded" basis. 11. A manufacturer found that the maintenance cost of its heavy machinery was tied so the age of the epuipment. Experience indicated that the maintenance cost increased at an increasing rate as the equigment aped, The graphs below represent cost bebavior patterns that might occur in a company's cost structure. The verticai axis represents total cost, and the horizontal axis represents activity output. 3 more Check My Work uses remaining For each of the following situations, choose the graph from the group a-l that best illustrates the cost pattern involved. Also, for each situation, identity the diver that measures activity output. 1. The cost of power when a fixed fee of $500 per month is charged plus an additional charge of $0.12 per kilowatt-hour used. 2. Commissions paid to sales representatives. Commissions are paid at the rate of 5 percent of saies made up to total annual sales of 5500,000 , and 7 percent of saies above $500,000. 3. A part purchased from an outside supplier costs $12 per part for the first 3,000 parts and $10 per part for all parts purchased in excess of 3,000 ialte. 4. The cost of surgical gloves, which are purchased in increments of 100 units (gioves come in boxes of 100 pairs). 4. The cost of surgical gloves, which are purchased in increments of 100 units (gloves come in boxes of 100 pairs). 5. The cost of tuition at a local college that charges $250 per credit hour up to-15 credit hours. Hours taken in excess of 15 are free. 6. The cost of tuition at another coliege that charges $4,500 per semester for any course load ranging from 12 to 16 credit hours. Students taking fewer than 12 credi hours are charged $375 per credit hour, Students taking more than 16 credit hours are charged $4,500 plus $300 per credit hour in excess of 16 . 7. A beauty shop's purchase of soaking solution to remove artificial nails. Each jar of solution can soak off approximately 50 nails before iosing its effectiveness. 8. Purchase of diagnostics equipment by a company for inspection of incoming orders. 9. Use of disposable gowns by patients in a hospital. 10. Cost of labor at a focal fast-food restaurant. Three employees are always on duty during working hours; more employees can be called in during periods of heavy demand to work on an "as-needed" basis. 11. A manufacturer found that the maintenance cost of its heavy machinery was tied to the age of the equipment. Experience indicated that the maintenance cost increased at an increasing rate as the equipment aged