Question

Morning Dove Company manufactures one model of birdbath, which is very popular. Moming Dove sells all units it produces each month. The relevant range is 0–1,700 units, and monthly production costs for the production of 1,300 units follow. Moming Dove's utilities and maintenance costs are mixed with the fixed components shown in parentheses. Production Costs Direct materials Direct labor Utilities ($150 fixed) Supervisor's salary Maintenance (S330 fixed) Depreciation Total Cost $ 2,500 7.700 650 3.200 490 850 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 Rate per Unit Production Costs Direct Materials Direct labor Utilities Supervisor's Salary Maintenance per Unit per Unit per Unit per Unit per Unit per Month per Month per Month per Month per Month per Month Depreciation 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

Answer 1

0.38 Units 1300 Direct materila =2500/1300 1.92 Direct labor =7700/1300 5.92 Uitilities =(650-150)/1300 Maintenance =(490-330)/1300 0.12 Prodcution Costs Behavior Direct Material Varaible Direct Labor Variable Utilities Mixed Supervisor's Salary Fixed Maintenance Mixed Depreciation Fixed Rate 1.92 Per Unit Per Month 5.92 Per Unit Per Month 0.38 Per Unit 150 Per Month Per Unit 3200 Per Month 0.12 Per Unit 330 Per Month Per Unit 850 Per Month 8.34 Total Varaible cost Per Unit Total Fixed cost Per Month 4530 Total cost = 4530 + 8.34 X Total cost at 1500 Uniits + X = a 4530 b 8.34 x 1500 17040