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 fol1ows for July and September.
Cost Item | Cost Behavior | Cost Amount | Broadcast Hours during Month |
Production crew | Variable |
|
|
July |
| $4,875 | 390 |
September |
| 8,000 | 640 |
Supervisory employees | Fixed |
|
|
July |
| 5,000 | 390 |
September |
| 5,000 | 640 |
Required:
1. Compute the cost per broadcast hour during July and September for each of these cost items.
2. What wil1 be the total amount incurred for each of these costs during December, when the station’s activity wil1 be 420 broadcast hours?
3. What will be the cost per broadcast hour in December fer each of the cost items?
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