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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 0-1,600 units, and monthly production costs for the production of 1,100 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses Production Costs Direct materials Direct labor Utilities ($110 fixed) Supervisors salary Maintenance ($280 fixed) Depreciation Total Cost S 2,700 7,500 630 3,200 540 700 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.) Costs Behavior Rate Direct Materials Direct labor Utilities Supervisor's Salary Maintenance 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 0-1,600 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 1,300 units per month. Enter answer as arn equation in the form of y a+ bx. (Round Variable cost per unit to 2 decimal places.)
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