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CUS ON Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The
CUS ON 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 0-2,000 units, and monthly production costs for the production of 1,600 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $2,700 Direct labor 6,700 Utilities ($130 fixed) 570 Supervisor's salary 3,400 Maintenance ($260 fixed) 490 Depreciation 850 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] 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 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. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 41 Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or thereof). (Round your per unit value to 2 decimal places.) Production Costs Direct Materials Direct labor Utilities Supervisor's Salary Maintenance Depreciation: Behavior Rate per Unit per Month per Unit per Month: per Unit per Month per Unit per Month per Unit per Month per Unit per Month
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