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E5-4 and E5-5 [LO 5-1, 5-5] Skip to question Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all
E5-4 and E5-5 [LO 5-1, 5-5] Skip to question 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 1,500 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 2,500 Direct labor 7,700 Utilities ($150 fixed) 560 Supervisors salary 2,700 Maintenance ($300 fixed) 550 Depreciation 750 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 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 1,700 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 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 per Unit per Month Direct Materials Direct labor per Unit per Month Utilities per Unit per Month per Unit per Month Supervisor's Salary Maintenance Depreciation per Unit per Month per Unit per Month Complete this question by entering your answers in the tabs below. 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 Required 1 Required 2 Required 3 Required 4 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 1,700 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 II yStep by Step Solution
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