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 follows for July and September. 

1. Compute the cost per broadcast hour during July and September for each of these cost items. 

2. What will be the total amount incurred for each of these costs during December, when the station’s activity will be 420 broadcast hours? 

3. What will be the cost per broadcast hour in December for each of the cost items?

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Cost Cost Broadcast Hours Cost Item Behavior Amount during Month Production crew Variable July . $4,875 390 September 8,000 640 Supervisory employees Fixed July 5,000 390 September 5,000 640