Question
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
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 | $ | 4,920 | 400 | ||||
September | 7,872 | 640 | |||||
Supervisory employees | Fixed | ||||||
July | 5,500 | 400 | |||||
September | 5,500 | 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 430 broadcast hours? 3. What will be the cost per broadcast hour in December for each of the cost items?
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