Probable type of behavior that each of the costs exhibits, Accounting Basics

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Probable type of behavior that each of the costs exhibits

Spirit Company produces baseball caps. The company incurred the following costs to produce 12,000 caps last month:

Cardboardforthebrims $ 4,800
Cloth $12,000
Plastic for headbands $6000
Straight-line depreciation $7200
Supervisors' salaries $19200
Utilities $3,600
Total $52,800

a. What did each cap component cost on a per-unit basis?

b. What is the probable type of behavior that each of the costs exhibits?

c. The company expects to produce 10,000 caps this month. Would you expect each type of cost to increase or decrease? Why? Can the total cost of 10,000 caps be determined? Explain.

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Accounting Basics: Probable type of behavior that each of the costs exhibits

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Accounting Basics: Probable type of behavior that each of the costs exhibits

Reference No:- TGS055964

Have a Question? (oR Write a Review)

Recent Questions Asked Accounting Basics

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Request for Solution File

Ask an Expert for Answer!!

Accounting Basics: Probable type of behavior that each of the costs exhibits

Reference No:- TGS055964

Recent Questions Asked Accounting Basics

Q : Three-year insurance premium payment

Q : Land after the complete liquidation

Q : Contemplating an ad campaign-net operating income

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Q : Probable type of behavior that each of the costs exhibits

Q : Complete the trial balance

Q : Examples related to audit sampling applications

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Q : Compute dobbs total standard cost per unit

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