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Chapter 2 Job Order Costing 77 Projects Managerial analysis CP 2-1 The controller of the plant of Minsky Company prepared a g
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From the graph we can easily conclude that the unit cost is witnessing a rising trend. The graph starts with a unit cost of marginally above $20 and ends with a unit cost of around $37.5. The second important thing that can be noted from the graph is that the unit costs witnesses an unusual spike or an unusual increase every Friday.

The information that I will further request is what is the basis of allocating factory overhead to each unit of production and what is the activity base and the allocation base. I will further request a day by day break up of the unit costs for each day of the week from Monday to Friday in terms of its different components like direct material, direct labor and overheads. This will help me determine why the unusual spike is being witnessed by unit cost every Friday.

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