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 1,800 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 Costa Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($250 fixed) Depreciation Total Cost $ 2,700 6,900 640 2,600 540 850 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 Dave's linear cost equation for a production level of 0 to1,800 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.
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 1,800 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 Costa Direct materials Direct labor Utilities ($140 fixed) Supervisor's salary Maintenance ($250 fixed) Depreciation Total Cost $ 2,700 6,900 640 2,600 540 850 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 Dave's linear cost equation for a production level of 0 to1,800 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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![[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 1,800 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 ($140 fixed)
Supervisor's salary
Maintenance ($250 fixed)
Depreciation
Total Cost
$ 2,700
6,900
640
2,600
540
850
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 to1,800 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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F61d068a8-a79e-4cef-8442-ea778239765f%2F0ac48dda-9e20-4a25-8a8e-551f4c365fab%2Fv6w3b6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:[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 1,800 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 ($140 fixed)
Supervisor's salary
Maintenance ($250 fixed)
Depreciation
Total Cost
$ 2,700
6,900
640
2,600
540
850
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 to1,800 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.
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