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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 01,600 units, and monthly production costs for the production of 1,100 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.
Production Costs | Total Cost | |
Direct materials | $ | 1,500 |
Direct labor | 7,500 | |
Utilities ($110 fixed) | 560 | |
Supervisors salary | 3,500 | |
Maintenance ($250 fixed) | 530 | |
Depreciation | 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.)
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