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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 01,500 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 Direct materials Direct labor Total Cost $ 2,700 6,700 640 3,000 Utilities ($130 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation 540 850 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 Behavior Rate Direct Materials per Month per Unit per Month Direct labor per Unit 0.46 per Unit Utilities $ 130 per Month Supervisor's Salary per Unit per Month Maintenance 340 per Month 0.18 per Unit $ Depreciation per Month per Unit 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 0-1,500 units. Enter answer as an equation in the form of y abx. (Round your variable cost to 2 decimal places.) + Total Cost = + X 4. Calculate Morning Dove's expected total cost if production increased to 1,300 units per month. Enter answer as an equation in the form of y abx X b X C
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