Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 17 Aug 2017 My Price 5.00

Variable Cost Analysis

Variable Cost Analysis

6.    Machine depreciation based on machine hours used

7.    Machine operator’s hourly wages

8.    Cost of required outside inspection of each unit produced

 

e2A. Zero Time Oil Change has been in business for six months. The company   pays

$0.75 per quart for the oil it uses in servicing cars. Each job requires an average of 4 quarts of oil. The company estimates that in the next three months, it will service 250, 280, and 360 cars.

1.    Compute the cost of oil for each of the three months and the total cost for all three months.

2.    Complete the following sentences by choosing the words that best describe the cost behavior at Zero Time:

a.    Cost per unit (increased, decreased, remained constant).

b.    Total variable cost per month (increased, decreased) as the quantity of oil used (increased, decreased).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Answers

Maurice Tutor
(5)
Status NEW Posted 17 Aug 2017 12:08 AM My Price 5.00

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