Spirit company produces baseball caps

Reference no: EM131130170

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

Cardboard for the brims	$ 4,800
Cloth	12,000
Plastic for headbands	6,000
Straight-line depreciation	7,200
Supervisors' salaries	19,200
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.

Reference no: EM131130170

Questions Cloud

Discusses the visual elements in the art work : Write a paragraph that discusses the visual elements in the art work (For example, are the shapes geometric, or organic. What colors are used, etc.?).

Good employee with near perfect attendance record : A good employee with a near perfect attendance record has suddenly been missing 2-3 days of work per week. His supervisor has repeatedly told him he must be at work daily, or he will be fired. Now, the supervisor wants to fire him, but has come to as..

What is your average tax rate-marginal tax rate : Now, assume you are instead given a $500,000 investment portfolio when your grandmother dies. Rather than working, you decide to invest the assets using your extensive investment knowledge gained during your time at NAU. What is your average tax rate..

Cost of debt using both methods currently : Cost of debt using both methods Currently, Warren Industries can sell 15-year,$1,000-par-value bonds paying annual interest at a 12% coupon rate.

Spirit company produces baseball caps : 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.

Write the paper in essay form and the art objects : You must write the paper in essay form and the art objects must be from the time period we study in this course. prehistory to early renaissance, 14th C.

Find the utility maximizing combination of rides and games : Then draw the budget line and find the utilitymaximizing combination of rides and games.

Four situations where accounting control systems : To identify and discuss four situations where accounting control systems might not motivate desirable behaviour?To briefly discuss the improvements you would suggest in order ensuring that some of the dysfunctional behavioural consequences of acco..

Flaherty accounting services pays : (Cost behavior) Flaherty Accounting Services pays $2,000 per month for a tax software license. In addition, variable charges incurred average $9 for every tax return the firm prepares.

User Account

All Pages