Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove selfs all units it produces each month. The
Required information Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove selfs all units it produces each month. The relevant range is 0-1,700 units, and monthly production costs for the production of 1,200 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 ($100 fixed) Supervisor's salary Maintenance ($260 fixed) Depreciation Total Cost $1,900 6,700 580 2,900 540 850 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). 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 0-1,700 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 1,400 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 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 Direct Materials Direct labor Utilities Supervisor's Salary Maintenance Depreciation Behavior Rate per Unit per Month per Unit per Month per Unit per Month per Unit per Month per Unit per Month per Unit per Month
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started