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 it

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 0-1,700 units, and monthly production costs for the production of 1,300 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costa Total Cost Direct materials $3,100 Direct Labor 7,700 Utilities ($110 fixed) 560 Supervisor's salary 2.900 Maintenance ($300 fixed) Depreciation 800 510 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 Moming Dove. 3. State Morning Dove's linear cost equation for a production level of 0-1,700 units. Enter answer as an equation in the form ofya + bx 4. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation in the form of a + bx Complete this question by entering your answers in the tabs below. 5 Book Hint 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.) rences Behavior Rate per Unit per Unit Production Costs Direct Materials Direct labor Utilities Supervisor's Salary Maintenance Depreciation Der Unit per Month per Month per Month per Month per Month per Month per Unit per Unit per Unit Required Required 2 > 4. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation in the form of y = a + bx Complete this question by entering your answers in the tabs below. 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 information .. WE WRACULOUP LIMIYUNIC LOVE WIy wur. 3. State Morning Dove's linear cost equation for a production level of 0-1,700 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 1,500 units per month. Enter answer as an quation in the form of y = a + bx Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-1,700 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 4. Calculate Morning Dove's expected total cost if production increased to 1,500 units per month. Enter answer as an equation in the form of y = a + bx Complete this question by entering your answers in the tabs below. ces Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,500 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Advanced Accounting

Authors: Debra C. Jeter, Paul Chaney

2nd Edition

0471218529, 978-0471218524

More Books

Students also viewed these Accounting questions