Question

i need you to solve all of them

Required information 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 0-1,900 units, and monthly production costs for the production of 1,500 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 ($130 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation Total Cost $2,100 6,500 570 3,200 550 850 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). 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 0-1,900 units. Enter answer as an equation in the form of y = a + bx 4. Calculate Morning Dove's expected total cost if production increased to 1,700 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.

Answer 1

1.

Identify each cost as follows:

Production Costs	Behavior	Rate
Direct Materials ($2100/1500)	Variable	$1.40	Per unit	-	per month
Direct Labor ($6500/1500)	Variable	$4.33	Per unit	-	per month
Utilities [($570-$130)/1500]	Mixed	$0.29	Per unit	$130	per month
Supervisor's salary	Fixed	-	Per unit	$3,200	per month
Maintenance [($550-$270)/1500]	Mixed	$0.19	Per unit	$270	per month
Depreciation	Fixed	-	Per unit	$850	per month

______________________________________________________________________

2.

Determine cost as follows:

	Variable cost per unit
Direct Materials	$1.40
Direct Labor	$4.33
Utilities	$0.29
Maintenance	$0.19
Total	$6.21

	Fixed cost per month
Utilities	$130.00
Supervisor's salary	$3,200
Maintenance [($550-$270)/1500]	$270
Depreciation	$850
Total	$4,450.00

______________________________________________________________

3.

linear cost equation for a production level of 0-1,900 units:

y = a + bx

y = Total cost

a = Fixed cost = $4450

b = variable cost per unit = $6.21

Therefore, y = $4450 + $6.21x

____________________________________________________________

4.

Linear equation, if production increased to 1700 units per month:

y = a + bx

x = 1700 units

y = Total cost

a = Fixed cost = $4450

b = variable cost per unit = $6.21

y = $4450 + ($6.21 $\times$ 1700)

= $15007