Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
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 0-2,000 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 conta Total Cost Direct materials $1,700 Direct labor 6,900 Utilities ($120 fixed) Supervisor's salary 3,100 Maintenance ($300 fixed) 520 Depreciation 850 590 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 0-2,000 units. Enter answer as an equation in the form of y = a + 4. Calculate Morning Dove's expected total cost if production increased to 1700 units per month. Enter answer as an equation in the form of y = a + bx bx. 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 $ 1.13 per Unit $ Direct labor Variable $ $ Utilities Mixed $ 4.60 per Unit 0.39 per Unit 2.07 per Unit $ 1,700 per month 6,900 per month 590 per Month 3,100 per month 520 per month 850 per month Supervisor's Salary Fixed $ Maintenance Mixed 0.35 per Unit $ Depreciation Fixed $ 0.57 per Unit $ 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 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-2,000 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 + Required 1 Required 2 Required 3 Required 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.) a + b X y $ 0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions