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 to1,700 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 1,600 units per month. Enter answer as an equation in the form of y = a + bx.
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 to1,700 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 1,600 units per month. Enter answer as an equation in the form of y = a + bx.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![E5-4 i
ces
E5-4 and E5-5 [LU 5-1, 5-5]
[The following information applies to the questions displayed below]
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 to 1,700 units, and monthly production costs for the production of 1,400
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 ($140 fixed)
Supervisor's salary
Maintenance ($250 fixed)
Depreciation
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 to1,700 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 1,600 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.
Required 1
Total Cost
$ 2,300
6,500
590
2,600
480
800
Required 2
Production Costs
Direct materials
Direct labor
Utilities
Supervisor's salary
Maintenance
Depreciation
Required 3
Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination
thereof).
Note: Round your per unit value to 2 decimal places.
Saved
Behavior
Required 4
per Unit
per Unit
per Unit
per Unit
per Unit
per Unit
Rate
per Month
per Month
per Month
per Month
per Month
per Month](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F294ecdbe-694e-4224-ab05-8b0fb683b7d8%2F0cb11be8-efb5-4863-a279-46174d54271b%2Fx57tfu5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:E5-4 i
ces
E5-4 and E5-5 [LU 5-1, 5-5]
[The following information applies to the questions displayed below]
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 to 1,700 units, and monthly production costs for the production of 1,400
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 ($140 fixed)
Supervisor's salary
Maintenance ($250 fixed)
Depreciation
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 to1,700 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 1,600 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.
Required 1
Total Cost
$ 2,300
6,500
590
2,600
480
800
Required 2
Production Costs
Direct materials
Direct labor
Utilities
Supervisor's salary
Maintenance
Depreciation
Required 3
Identify each cost as variable, fixed, or mixed, and express each cost as a rate per month or per unit (or combination
thereof).
Note: Round your per unit value to 2 decimal places.
Saved
Behavior
Required 4
per Unit
per Unit
per Unit
per Unit
per Unit
per Unit
Rate
per Month
per Month
per Month
per Month
per Month
per Month
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