Tony Hawk's business, Hawk Skateboards, started manufacturing skateboards in March 2014. After years of professional skateboarding, Tony decided to focus on producing high quality skateboards for other aspiring professional skateboarders. Hawk Skateboards produces several different quality skateboard products at its various fadilities. The DeKalb facility produces only The Wyvern model The best quality skateboard, The Wyvern, is known for its ability to aid it's rider to accomplish extraordinary aeronautical, and impressive stunts. The raw material cost of producing the skateboard deck is as follows: 1. Maple board (1 $200.00 each) 2. Aluminum trucks (2 $50.00 each) 3. Polyurethane wheels (4 $30.00 each) 4. The full precision, metal ball bearings for the wheels (4 $25.00 each) Some incidental costs of production are: the glue (an approximate cost of $1.50 per board) used in producing the maple boards and the grip tape (approximately $2.75 per board) which is applied to provide traction after the design has been painted on the surface of the board All the skateboards are handmade and assembled by skilled workers who are paid $25.00 per hour. It takes approximately 2 hours to assemble each board and apply the grip tape after the artists have completed the design. In addition, skilled artists paint each of the boards with the image of a Wyvern Dragon. It is then covered with a dear coat varnish to protect the design. These skilled artists are paid as much as $55 per hour for their work. It takes the artists approximately 3 hours to paint on the Wyvern dragon design from which the skateboard gets its name. Name and ZID# A supervisor was hired to oversee production; her monthly salary will be $8,000. The property taxes on the production facility will be approximately $3,000 per month and utilities will run approximately $150 per month. Factory janitorial costs are usually $1,200 per month, factory maintenance costs are $2,500 per month and advertising costs are $2,000 per month. Insurance costs on the factory building and its contents is $1,500 per month. Depreciation on the factory building is $5,400 per month. It costs approximately $50.00 to ship each of the finished skateboards to a customer Tony Hawk, the CEO of Hawk Skateboards, visits all of his facilities over the course of a year to check on production quality. His monthly salary is $80,000. Administration of all facilities, including the one in DeKalb, is done at Hawk Skateboard's Headquarters in Chicago, IL. Administrative office salaries are $110,000 per month and administrative office supplies (billing) are $4,000 per month. REQUIRED: Part 1. (Worth 9.5 pts): For the following items listed below, please indicate, by placing an "X" in the appropriate column, whether it is a variable or fixed cost in relationship to the number of skateboards produced; then determine whether the cost is a period (selling or administrative) or product cost (DM, DL, or MOH) by placing the correct dollar amount per month (or per unit) under the appropriate column. COST BEHAVIOR Variable or Fixed with Respect to the Number of Skateboards Produced or Sold Period Cost Product Cost Cost Item Variable Fixed Selling Administrative Direct S200 Indirect Example: Cost of maple board per unit a. Supervisor's sala b. Assembly labor cost per unit c. Cost of skateboard truck per unit d. Approximate cost of glue per unit e. Depreciation of the building per month f. Advertising cost per month r month Shipping cost per unit h. Administrative office salaries per month i, Factory utility costs per month Pr k. Cost of polyurethane wheels (4 1. Artist labor cost per unit m. Administrative office supplies (billing) per month. n. Insurance on building and equipment per month o. Approximate cost of ip ta taxes on buildin r month unit r unit. Cost of ball bearings (4) per unit CEO Tony Hawks salary per month r. Factory maintenance costs per month Factory janitorial costs Part 2. (Worth 11.5 pts): Calculate the cost per unit, assuming Hawk Skateboards produces 3,000 boards per month