FirstClass Gaming Inc. manufactures components for computer games within a relevant range of 134,400 to 218,400 components per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced Total costs Total variable costs Total fixed costs Total costs Cost per unit: 134,400 $63,168 69,888 $133,056 166,400 (a) (b) (d) (e) (1) 218,400 (1) (K) (1) Variable cost per unit (9) (m) Fixed cost per unit (h) (n) Total cost per unit () (0) Complete the cost schedule below. Round costs per unit to the nearest cent.

Step Costs, Relevant Range Bellati Inc. produces large industrial machinery. Bellati has a machining department and a group of direct laborers called machinists. Each machinist can machine up to 500 units per year. Bellati also hires supervisors to develop machine specification plans and oversee production within the machining department. Given the planning and supervisory work, a supervisor can oversee, at most, three machinists. Bellatis accounting and production history shows the following relationships between number of units produced and the annual costs of supervision and materials handling (by machinists): Required: 1. Prepare a graph that illustrates the relationship between direct labor cost and number of units produced in the machining department. (Let cost of direct labor be the vertical axis and number of units be the horizontal axis.) Would you classify this cost as a strictly variable cost, a fixed cost, or a step cost? 2. Prepare a graph that illustrates the relationship between the cost of supervision and the number of units produced. (Let cost of supervision be the vertical axis and number of units be the horizontal axis.) Would you classify this cost as a strictly variable cost, a fixed cost, or a step cost? 3. Suppose that the normal range of production is between 1,400 and 1,500 units and that the exact number of machinists is currently hired to support this level of activity. Further suppose that production for the next year is expected to increase by an additional 500 units. What is the increase in the cost of direct labor? Cost of supervision?

Relevant Range and Fixed and Variable Costs Third World Gamer Inc. manufactures components for computer games within a relevant range of 76,800 to 128,000 disks per year. Within this range, the following partially completed manufacturing cost schedule has been prepared: Components produced Total costs: Total variable costs Total fixed costs " Total costs Cost per unit: Variable cost per unit Fixed cost per unit Total cost per unit Components produced 76,800 Total costs: $27,648 30,720 $58,368 (a) (b) (c) 96,000 (g) (m) (h) (n) (i) (0) Complete the cost schedule below. Round costs per unit to the nearest cent. (d) (e) (f) 76,800 Cost Schedule 128,000 (j) (k) (1) 96,000 128,000

Relevant range and fixed and variable costsVogel Inc. manufactures memory chips for electronic toys within arelevant range of 45,000 to 75,000 memory chips per year. Within this range, the following partially completedManufacturing cost schedule has been prepared   Complete the cost schedule, identifying each cost by the appropriateletter (a) through (o).