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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
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 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses Total Cost Production Costs Direct materials Direct labor Utilities ($100 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation $ 2,500 6,700 620 3,200 530 850 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 Behavior Rate per Unit per Unit $ 0.40 per Unit per Unit $ 0.20 per Unit per Unit ariable ariable Mixed Fixed Mixed Fixed per Month per Month 100 per Month 3,200 per Month 270 per Month per Month Salar Maintenance Depreciation 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your variable cost 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 to 2 decimal places.) Total Cost
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