Chapter 2

# Chapter 2 - Name Nguyen Thi Lan Thanh Student ID 1236311...

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Unformatted text preview: Name: Nguyen Thi Lan Thanh Student ID: 1236311 CHAPTER 2 13 / a) Each cap component cost on a per-unit basis: \$26,400/6,000 = \$4.4 b) The probable type of behavior that each of the costs exhibits: Variable costs: Cardboard for the brims, Cloth, Plastic for headbands. Fixed costs: Straight-line depreciation, Supervisor’s salaries. Mixed cost: Utilities. c) The company expects to produce 5,000 caps this month. I would expect each type of cost to decrease. Because of producing 6,000 caps, total cost is \$26,400, so producing 5,000 caps, total cost is decreased. The total cost of 5,000 caps cannot be determined. Because I do not determine each component cost. 14 / a)The per-unit cost of each croquet set component was: Cardboard boxes: \$1,000/1 = \$1,000 Mallets: \$12,000/2 = \$6,000 Croquet balls: \$9,000/6 = \$1,500 Wire hoops: \$3,600/12 = \$300 b) The total cost per croquet set was; \$40,700/2,000 = \$20.35 c) Merry Olde made 2,500 croquet sets and incurred the following costs: Cardboard boxes (1 per set) \$ 1,250 Mallets (2 per set) \$15,000 Croquet balls (6 per set) \$11,250 Wire hoops (12 per set, including extras) \$ 4,500 Total hourly wages for production workers \$10,500 Supervisor’s salary \$ 2,600 Building and equipment rental...
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Chapter 2 - Name Nguyen Thi Lan Thanh Student ID 1236311...

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