Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Morning Dove Company manufactures one model of birdbatn, which is very popular. Morning Dove sells all units it produces each month. The relevant

image text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribedimage text in transcribed
Required information Morning Dove Company manufactures one model of birdbatn, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 01500 units, and monthly production costs for the production of1,200 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost Direct materials $ 2,569 Direct labor 7,769 Utilities ($116 fixed) 659 Supervisor's salary 2,669 Maintenance ($296 fixed) 54G Depreciation 759 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 01,500 units. Enter answer as an equation in the form ofy = 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 ofy = 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, xed, 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.) Direct Materials per Unit per Month Direct labor per Unit per Month Utilities per Unit per Month Supervisor's Salary per Unit per Month Maintenance per Unit per Month Depreciation per Unit per Month \fDetermine the total xed 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 State Morning Dove's linear cost equation For a production level of 01500 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.) J _______________________ E 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. (Round intermediate calculations and variable cost per unit to 2 decimal places.)

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

Mergers, Acquisitions, And Corporate Restructurings

Authors: Patrick A Gaughan

6th Edition

1118997549, 9781118997543

More Books

Students also viewed these Accounting questions