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Moning Dove Company manufactures one model of birdbath, which is very popular. Morming Dove sells all units it produces each month. The relevant range is
Moning Dove Company manufactures one model of birdbath, which is very popular. Morming Dove sells all units it produces each month. The relevant range is 0-1,800 units, and monthly production costs for the production of 1,500 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses Production CostsTotal Cost Direct materials Direct labor Utilities ($150 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation S 2,100 6,500 630 3,400 450 800 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). (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 Unit per Unit per Unit per Unit per Unit per Month per Month per Month per Month per Month per Month 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month 3. State Morning Dove's linear cost equation for a production level of 0-1,800 units. Enter answer as an equation in the form of y a bx. (Round your variable cost per unit to 2 decimal places.) Total Cost- 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 Variable cost per unit to 2 decimal places.)
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