I need 2 responses to each student discussion board post. Please keep separate and in order. each post should be at least 150 words each with references Turnitin is being used to check for plagiarism and Please use APA format. 300 words total
1. Collapse Subdiscussion Brandy Havens
Brandy Havens
XXXXXXXXXX:47am Mar 27 at 9:47am
Hi Marcus. You brought up an excellent point about the idea of semi-variable and semi-fixed costs! Now, let’s take a look at a semi-variable cost such as factory wages.
Class, let’s say that the average hourly wage for our factory employees is $12.00 per hour. If they work more than 40 hours per week, we have to pay them time-and-a-half ($18.00 per hour) for the time that exceeds 40 hours. The plant is currently running at full capacity. However, we receive a special request from one of our customers for a large one-time order. How do we determine whether it will be worth our while to accept the special order and pay the employees over-time wages?
2.
Jobin Abraham
XXXXXXXXXXYesterday Mar 26 at 9:14pm
A fixed cost will remain the same whether there is an increase or decrease in activity level (Schneider, XXXXXXXXXXHowever, the fixed cost per unit will change in response to an increase or decrease in activity. An example of a fixed cost would be the rent for a manufacturing facility, which would be relatively stable. Regardless of how many units are manufactured in the facility, the rent would remain the same. What would change is the fixed cost per unit of the item manufactured based on an increase or decrease in production, with an increase in production lowering fixed cost per unit and a decrease in production raising the fixed cost per unit.
A variable cost will change in response to the level of activity (Schneider, XXXXXXXXXXAn increase in activity will cause an increase in variable costs, while a decrease in activity will cause a decrease in variable costs. An example of variable cost rise would be the payroll expenses for a retail store rising in response to hiring additional workers for the holidays.
Reference
Schneider, A (2017). Managerial accounting: Decision making for the service and manufacturing sectors. (2nd Edition) [Electronic version]. Retrieved from https://content.ashford.edu/books/Schneider XXXXXXXXXX