Question
#18 Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The
#18 Required information
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 02,000 units, and monthly production costs for the production of 1,600 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Production Costs | Total Cost | |
Direct materials | $ | 2,100 |
Direct labor | 8,100 | |
Utilities ($110 fixed) | 590 | |
Supervisors salary | 2,600 | |
Maintenance ($250 fixed) | 500 | |
Depreciation | 850 | |
Required:
1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof).
2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove.
3. State Morning Doves linear cost equation for a production level of 02,000 units. Enter answer as an equation in the form of y = a + bx.
4. Calculate Morning Doves expected total cost if production increased to 1,800 units per month. Enter answer as an equation in the form of y = a + bx.
Required 1 Required 2 Required 3 Required 4 Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). (Round your per unit value to 2 decimal places.) Production Costs Behavior Rate Direct Materials per Unit per Month Direct labor per Unit per Month Utilities per Unit per Month Supervisor's Salary per Unit per Month Maintenance per Unit per Month Depreciation per Unit per Month Required 1 Required 2 Required 1 Required 2 Required 3 Required 4 Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month State Morning Dove's linear cost equation for a production level of 0-2,000 units. Enter answer as an equation in the form of y = a + bx. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Cost + Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,800 units per month. Enter answer as an equation in the form of y = a + bx. (Round intermediate calculations and variable cost per unit to 2 decimal places.) a + b = yStep by Step Solution
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