20# [The following information applies to the questions displayed below.]

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 01,500 units, and monthly production costs for the production of 500 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs	Total Cost
Direct materials	$	1,500
Direct labor		7,500
Utilities ($100 fixed)		650
Supervisors salary		3,000
Maintenance ($280 fixed)		480
Depreciation		800

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 01,500 units. Enter answer as an equation in the form of y = a + bx.

4. Calculate Morning Doves expected total cost if production increased to 1,200 units per month. Enter answer as an equation in the form of y = a + bx.

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 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 0-1,500 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 = + Calculate Morning Dove's expected total cost if production increased to 1,200 units per month. Enter answer as an equation in the form of y = a + bx. (Round Variable cost per unit to 2 decimal places.) a + b y