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Required information E5-4 and E5-5 (LO 5-1, 5-5] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units
Required information E5-4 and E5-5 (LO 5-1, 5-5] 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 0-1,900 units, and monthly production costs for the production of 1,500 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 ($140 fixed) Supervisor's salary Maintenance ($260 fixed) Depreciation Total Cost $3,100 7,900 570 2,700 510 850 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] 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). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0-1,900 units. Enter answer as an equation in the form of y=a+ bx. 4. Calculate Morning Dove's expected total cost if production increased to 1,700 units per month. Enter answer as an equation in the form of v a + bx. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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 Variable $ 2.06 per Unit per Month Direct labor Variable $ 5.26 per Unit per Month Utilities Mixed per Unit per Month Supervisor's Salary Fixed per Unit per Month Maintenance Mixed per Unit per Month Depreciation Fixed per Unit per Month Required 1 Required 2 Required 3 Required 4 Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month < Required 1 Required 3 > Required 1 Required 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-1,900 units. Enter answer as an equation in the form of y= a + bx. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total Cost Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Requited 4 Calculate Morning Dove's expected total cost if production increased to 1,700 units per month. Enter answer as an equation in the form of y = a + bx. (Round intermediate calculations and variable cost per unit to 2 decimal places.) + b x X 0 < Required 3 Required 4
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