Question: Problem 6-35 Cost Behavior Patterns in a Variety of Settings; Interna- tional Issues (LO 6-1, 6-2) For each of the cost items described below,
Problem 6-35 Cost Behavior Patterns in a Variety of Settings; Interna- tional Issues (LO 6-1, 6-2) For each of the cost items described below, choose the graph (see next page) that best represents it. 1. The salary costs of the shift supervisors at a truck depot. Each shift is eight hours. The depot oper- ates with one, two, or three shifts at various times of the year. 2. The salaries of the security personnel at a factory. The security guards are on duty around the clock. 3. The wages of table-service personnel in a restaurant. The employees are part-time workers, who can be called upon for as little as two hours at a time. 4. The cost of electricity during peak-demand periods is based on the following schedule. Up to 9,500 kilowatt-hours (kwh). Above 9,500 kilowatt-hours $.10 per kwh $.13 per kwh The price schedule is designed to discourage overuse of electricity during periods of peak demand. 5. The cost of sheet metal used to manufacture automobiles.
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