Question

Moming Dove Company manufactures one model of birdbath, which is very popular Morning Dove sells all units produces each month. The relevant range is 0-1600 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 Total Cost $2,3ee 7,70e Se Utilities ($120 Fixed) Supervisor's salary Maintenance (5310 Fixed) Depreciation 2.800

Answer 1

1)	production costs		Behaviour	Rate
	Direct materials		variable	1.92	per unit		per month
	Direct labor		variable	6.42	per unit		per month
	Utilities		Mixed	0.37	per unit	120	per month
	supervisor's salary		Fixed		per unit	2,800	per month
	Maintenance		Mixed	0.19	per unit	310	per month
	Depreciation		Fixed		per unit	750	per month
2)	Total variable cost per unit			8.89
	total fixed cost per unit			3,980
3)	total cost	3,980	+	8.89	x
4)	a	+	b	X	x	=	y
	3,980	+	8.89	X	1400	=	16428