0 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 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 ($100 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $ 1,500 7,500 650 3,000 480 800 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 to 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 1,200 units per month. Enter answer as an equation in the form of y= a + bx.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 4EB: Roper Furniture manufactures office furniture and tracks cost data across their process. The...
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Complete this question by entering your answers in the tabs below.
Required 1 Required 2
Production Costs
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.
Behavior
Direct materials
Direct labor
Utilities
Required 3
Supervisor's salary
Maintenance
Depreciation
Required 4
< Required 1
per Unit
per Unit
per Unit
per Unit
per Unit
per Unit
Rate
Required 2 >
per Month
per Month
per Month
per Month
per Month
per Month
Transcribed Image Text:Complete this question by entering your answers in the tabs below. Required 1 Required 2 Production Costs 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. Behavior Direct materials Direct labor Utilities Required 3 Supervisor's salary Maintenance Depreciation Required 4 < Required 1 per Unit per Unit per Unit per Unit per Unit per Unit Rate Required 2 > 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 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 ($100 fixed)
Supervisor's salary
Maintenance ($280 fixed)
Depreciation
Total Cost
$ 1,500
7,500
650
3,000
480
800
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 to 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 1,200 units per month. Enter answer as an equation in the
form of y= a + bx.
Transcribed Image Text: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 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 ($100 fixed) Supervisor's salary Maintenance ($280 fixed) Depreciation Total Cost $ 1,500 7,500 650 3,000 480 800 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 to 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 1,200 units per month. Enter answer as an equation in the form of y= a + bx.
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ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College