WMEJ is an independent television station run by a major state university. The stations broadcast hours vary during the year depending on whether the university is in session. The stations production-crew and supervisory costs are as follows for July and September.

Cost Item Cost

Behavior Cost

Amount Broadcast Hours

during Month

Production crew Variable

July $ 5,445 450

September 7,744 640

Supervisory employees Fixed

July 4,600 450

September 4,600 640

Required:

1. Compute the cost per broadcast hour during July and September for each of these cost items.

2. What will be the total amount incurred for each of these costs during December, when the stations activity will be 480 broadcast hours?

3. What will be the cost per broadcast hour in December for each of the cost items?