Answered step by step
Verified Expert Solution
Question
1 Approved Answer
E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1 Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells
E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1 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 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the lied mponents shown in parentheses. Production Costs Direct materiab Direct labor Utiities ($160 fixed) Supervisor's salary Maintenance ($260 fixed) Depreciatkon Total Cost $2,900 6,900 550 2,900 480 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). (Round your per unit value to 2 decimal places.) n Costs Behavior Rate Direct Materials Direct latar Util.ies Supervisor's Salary per Unit per Unil per Unit per Unit per Uriil per Unit per Month per Monh per Monlh per Mantth per Month per Month 2. Determine the total fixed cost per month and the variable tost per unit for Morning Dove. (Round your variable cost per unit to 2 decimal places.) Total Varable Cost per Unit Total Fixed Cost per Month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started