Question
WMTB is an independent television station run by a major state university. The stations broadcast hours vary during the year depending on whether the university
WMTB 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 August and October.
Cost Item | Cost Behavior | Cost Amount | Broadcast Hours during Month | |||
Production Crew | Variable | |||||
August | $ | 4,788 | 380 | |||
October | 8,064 | 640 | ||||
Supervisory employees | Fixed | |||||
August | 4,200 | 380 | ||||
October | 4,200 | 640 |
Required:
1. Compute the cost per broadcast hour during August and October for each of these cost items. (Round your answers to 2 decimal places.)
Cost Item Cost Per Broadcast Hour August Cost Per Broadcast Hour October
Production Crew $_______________ per hour $______________________ per hour
Supervisory Employees $_______________ per hour $______________________ per hour
2. What will be the total amount incurred for each of these costs during December, when the stations activity will be 410 broadcast hours?
Total Cost for Production Crew $______________________
Total Cost for Supervisory Employees $________________
3. What will be the cost per broadcast hour in December for each of the cost items? (Round your answers to 2 decimal places.)
Cost Item Cost Per Broadcast Hour in December
Production Crew $_______________________ per hour
Supervisory Employees $______________________ per hour
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