Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost $2,300 7,900 630 3,200 520 800 Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Required: 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 per unit value to 2 decimal places.) Behavior Production Costs Rate Direct Materials Variable per Unit per Month Variable Direct labor per Month per Unit Mixed per Month Utilities per Unit Supervisor's Salary Fixed per Month per Unit Mixed Maintenance per Month per Unit Fixed Depreciation per Unit per 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 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month 3. 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 y your variable cost per unit to 2 decimal places.) abx. (Round Total Cost = X 4. 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 + а X У O ее
Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The relevant range is 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Total Cost $2,300 7,900 630 3,200 520 800 Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Required: 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 per unit value to 2 decimal places.) Behavior Production Costs Rate Direct Materials Variable per Unit per Month Variable Direct labor per Month per Unit Mixed per Month Utilities per Unit Supervisor's Salary Fixed per Month per Unit Mixed Maintenance per Month per Unit Fixed Depreciation per Unit per 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 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month 3. 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 y your variable cost per unit to 2 decimal places.) abx. (Round Total Cost = X 4. 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 + а X У O ее
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 7PB: Remarkable Enterprises requires four units of part A for every unit of Al that it produces....
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Transcribed Image Text:Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells all units it produces each month. The
relevant range is 0-1,800 units, and monthly production costs for the production of 1,400 units follow. Morning Dove's utilities and maintenance
costs are mixed with the fixed components shown in parentheses.
Production Costs
Total Cost
$2,300
7,900
630
3,200
520
800
Direct materials
Direct labor
Utilities ($140 fixed)
Supervisor's salary
Maintenance ($280 fixed)
Depreciation
Required:
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 per
unit value to 2 decimal places.)
Behavior
Production Costs
Rate
Direct Materials
Variable
per Unit
per Month
Variable
Direct labor
per Month
per Unit
Mixed
per Month
Utilities
per Unit
Supervisor's Salary Fixed
per Month
per Unit
Mixed
Maintenance
per Month
per Unit
Fixed
Depreciation
per Unit
per Month
Transcribed Image Text: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 decimal
places.)
Total Variable Cost per Unit
Total Fixed Cost per Month
3. 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 y
your variable cost per unit to 2 decimal places.)
abx. (Round
Total Cost =
X
4. 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
+
а
X
У
O
ее
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