Case Study Fixed and Variable Cost Behavior Harpers Inc. has a construction depot. Constructing the depot is the responsibility of the manufacturing department. Two of the resources needed to construct the depot are labor and building supplies. The cost driver for both resources is the square feet built. Depot$-$building laborers are paid the same wages regardless of the number of times the depot is built. Building supplies are a variable cost. A standard $40,000-$square$-$foot plant is built from four to eight times a month depending on the level and stage of manufacturing. For the most recent month, June, four depots were built. The June cost of labor was $$28,000$ and building supplies used cost $$7,500.$ The manufacturing schedule for the next quarter $($July through September$)$ indicates a depot has to be built five, six, and eight times respectively

In Excel

Requirements for Fixed Cost$/$ Variable Cost

In Excel

Q$1......,...,2,2$

$[10$ Marks$]$

Prepare a table that shows how labor cost, building supplies cost, total cost, and total cost per square feet built change in response to the square feet built. What is the predicted total cost of the depot building for the

$?$next quarter

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C$2$

Suppose Harpers can hire an outside manufacturing $.2$ company to build the depot as needed. The charge rate for the building is $$6,100$ per depot. If the outside manufacturing company is hired, Harpers can lay off the workers who are now building the depot and will spend nothing on building supplies. Will Harpers save money with the outside manufacturing company over the next quarter? Prepare a schedule that supports your

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$1.............1$

Create a line chart that reflects the Total Building Costs and Square Feet $($Number of Depots built$)$ for the two options $($Harpers vs Outside Company$).$ Must be $.$properly labeled and on one chart