Required information [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 1,500 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. Production Costs Direct materials Direct labor Utilities ($110 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation 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 to1,500 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. Required 1 Complete this question by entering your answers in the tabs below. Total Cost $ 3,100 8,100 Required 2 630 2,500 480 850 Production Costs Direct materials Direct labor Utilities Supervisor's salary Maintenance Depreciation 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. Required 3 Required 4 Behavior 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
Required information [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 1,500 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. Production Costs Direct materials Direct labor Utilities ($110 fixed) Supervisor's salary Maintenance ($340 fixed) Depreciation 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 to1,500 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. Required 1 Complete this question by entering your answers in the tabs below. Total Cost $ 3,100 8,100 Required 2 630 2,500 480 850 Production Costs Direct materials Direct labor Utilities Supervisor's salary Maintenance Depreciation 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. Required 3 Required 4 Behavior 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
Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 6PA: Box Springs, Inc., makes two sizes of box springs: twin and double. The direct material for the twin...
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