# Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. Therelevant range is 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenancecosts are mixed with the fixed components shown in parentheses.Production CostsTotal Cost\$2,3007,9006303,200520800Direct materialsDirect laborUtilities (\$140 fixed)Supervisor's salaryMaintenance (\$280 fixed)DepreciationRequired:1. Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination thereof). (Round your perunit value to 2 decimal places.)BehaviorProduction CostsRateDirect MaterialsVariableper Unitper MonthVariableDirect laborper Monthper UnitMixedper MonthUtilitiesper UnitSupervisor's Salary Fixedper Monthper UnitMixedMaintenanceper Monthper UnitFixedDepreciationper Unitper Month 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your variable cost per unit to 2 decimalplaces.)Total Variable Cost per UnitTotal Fixed Cost per Month3. State Morning Dove's linear cost equation for a production level of 0-1,800 units. Enter answer as an equation in the form of yyour variable cost per unit to 2 decimal places.)abx. (RoundTotal Cost =X4. Calculate Morning Dove's expected total cost if production increased to 1,600 units per month. Enter answer as an equation in the form of y = a +bx. (Round Variable cost per unit to 2 decimal places.)X+аXУOее

Question

I keep getting this question wrong and trying to see how to work it

Step 1

Production costs are such cost of a company which the company must be incurred for the manufacturing of a service or a product. It includes expenses of labor, raw material, salary of supervisor, depreciation.

Step 2

1

Given:

Total production units are 1,400.

The behavior of each cost and rate per unit or per month of each cost is as given below:

Step 3

Working notes:

• Direct material per unit rate: \$2,300/1,400 = \$1.64
• Direct labor per unit rate: \$7,900/1,400 = \$5.64
• Utilities: total amount is \$630. Fixed among this is \$140. Variable utilities are \$630-\$140 = \$490
• Variable utilities rate per unit: \$490/1,400 = 0.35
• Maintenan...

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