Question

WMEJ is an independent television station run by a major state university. The station’s broadcast hours vary during the year depending on whether the university is in session. The station’s production-crew and supervisory costs are as follows for July and September.

WMEJ is an independent television station run by a major state university. The station's broadcast hours vary during the year depending on whether the university is in session. The station's production-crew and supervisory costs are as follows for July and September Cost Behavior Variable Cost Amount Broadcast Hours during Month Cost Item Production crew July September Supervisory employees July September $4,826 8,382 380 660 Fixed 5,100 5,100 380 660 Required: 1. Compute the cost per broadcast hour during July and September for each of these cost items. 2. What will be the total amount incurred for each of these costs during December, when the station's activity will be 410 broadcast hours? 3. What will be the cost per broadcast hour in December for each of the cost items?

Answer 1

Solution:

1)

Statement showing computations:

Particulars	July	September
Variable costs	$4,826	$8,382
Fixed costs	$5,100	$5,100
Total cost	$9,926	$13,482
Broadcast hours during month	380	660
Cost per broadcast hours	$26.12	$20.42

2)

Particulars	Amount
Variable cost for 400 hours (4,826/380)*410	$5,207
Fixed costs	$5,100
Total cost for 400 hours	$10,307

3)

Particulars	Amount
Variable cost per broadcast hour ($5,207/410)	$12.7
Fixed cost per broadcast hour ($5,100/410)	$12.4
Total cost per broadcast hour	$25.1

Please give a Thumbs up ?. Thanks!!