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Required information Skip to question [ The following information applies to the questions displayed below .] Morning Dove Company manufactures one model of birdbath, which

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[The following information applies to the questions displayed below.]

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 to 1,500 units, and monthly production costs for the production of 1,100 units follow. Morning Doves utilities and maintenance costs are mixed with the fixed components shown in parentheses.

Production Costs Total Cost
Direct materials $ 1,900
Direct labor 7,900
Utilities ($120 fixed) 620
Supervisors salary 3,200
Maintenance ($350 fixed) 470
Depreciation 800

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 Doves linear cost equation for a production level of 0 to1,500 units. Enter answer as an equation in the form of y = a + bx.
  4. Calculate Morning Doves expected total cost if production increased to 1,300 units per month. Enter answer as an equation in the form of y = a + bx.

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