Question

Help Save Required Information E5-4 and E5-5 [LO 5-1, 5-5) 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 0-1,600 units, and monthly production costs for the production of 1.200 units follow. Morning Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($310 fixed) Depreciation Total Cost $1,900 7.300 640 3,000 800 E5-4 (Algo) Determining Cost Behavior and Calculating Expected Cost (LO 5-1 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). 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. 3. State Morning Dove's linear cost equation for a production level of 0-1,600 units, Enter answer as an equation in the form of y'at 4. Calculate Morning Dove's expected total cost if production increased to 1,400 units per month. Enter answer as an equation in the form of y = a + bx. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 Identify each cost as variable, fixed, or mixed, and express cach cost as a rate per month or per unit (or combination thereof). (Round your per unit value to 2 decimal places............... 1 of 1 !! Next

Answer 1

1)	production costs		Behaviour	Rate
	Direct materials		variable	1.58	per unit		per month
	Direct labor		variable	6.08	per unit		per month
	Utilities		Mixed	0.42	per unit	140	per month
	supervisor's salary		Fixed		per unit	3,000	per month
	Maintenance		Mixed	0.14	per unit	310	per month
	Depreciation		Fixed		per unit	800	per month
2)	Total variable cost per unit			8.23
	total fixed cost per unit			4,250
3)	total cost	4,250	+	8.23	x
4)	a	+	b	X	x	=	y
	4,250	+	8.23	X	1400	=	15765