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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 02,000 units, and monthly production costs for the production of 1,600 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs Total Cost
Direct materials $ 2,700
Direct labor 7,100
Utilities ($120 fixed) 620
Supervisors salary 3,400
Maintenance ($280 fixed) 460
Depreciation 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.) Direct Materials: Direct Labor:

Utilities:

Supervisors Salary:

Maintenence:

Depreciation

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 Doves linear cost equation for a production level of 02,000 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= ()+()x 4. Calculate Morning Doves expected total cost if production increased to 1,800 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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