Question

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 0–1,500 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. Total Cost $2,900 7,100 Production Costs Direct materials Direct labor Utilities ($150 fixed) Supervisor's salary Maintenance ($270 fixed) Depreciation 550 3,500 520 750 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 0-1,500 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 1,400 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.

Answer 1

Rade. $2.42 $5.92 pee unit . ples unit Required - I & Production cost Benavioul. Disect dueteriae valicuble cost. Direct laboud. variable cost. I winties . mined cost- Supervisor's Sulevy Fired cost- maintenance . mined cost . Fined cost Depreciation 0.33 pee unit. $150 $3500 por mouth pel month pel $0.21 Pee unit. $270 mouth pos mouth, 4750 *Direct medelice a cost pel canit - $2900 1200 unit = $2.42 pee cunity Direct labour cost pee cunit $5.42 pel court 1200 mit $7100 criurces =6550 = fined = $150 per mouth. varicuble, = $550-$150 $400. pee wüt = $400 12oo unit = $0.33 per cuit, Peshottha Maintenance = $520 Fined 1 vasicable . = $520-$270 = $ 250. $250 pal Смолян 1200 unit = 80.21 pee unit - 270 per month

RC QULRED) - 2 Toral variable cost 28 whit =4, 88- Polul tined cost per month $ 4610, wit $2, 42 рри #c-42 роя или computation i total variable cost Pee саме - ofeat kalox?cio Dilach labous willtres cuariasse paxi) коллеи с улся Сvoslavlu R24) notol variable cost pee unit фо-29 to-21 poo cuit pee wit ф & 8+88 per unit . iPhokos +?mod соѕt роя мола, - Utilities (f Poked pago) Supervisor's salary meintenance (fined past) Depiciation (9 6 Рwed OS+ pes on = $150 per moudh. - зSoo №9 wola, = $270 DOI month - $750 роя rvosh. - $4670 Rя они. REQUIRED - 3 Toda osh ET 46 по - $% -38 х (9 a + bon whele 3= Total cost a= timed cost ped woudh = $4670. ът пока9 was culu oh pея иш? - noor unit produced. . $%•8% wore % - Here there will be difference in anocent, this is due to the Roussain му лh t'ause. D2 decimals.

REQUIRED - 4 a + b X X 1400 units Y. 17,102, $4670 + $8.88 x whedo, a pobel timed cost ped wordh = $.4670. pes mouch b-) to the variable cost per unit = $8.88 pee wit X- Nord unit produced 1400 units pee month Y-> Toice cost ecupocied Total cost for the month to produce & 1400 whit $17,102 4 $ 17,00 (nore : - polo there will be a sught change in total cost since, the nambers are locunded so 2 decimals).