Question: E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1] Morning Dove Company manufactures one model of birdbath, which is very popular. Morning Dove sells

 E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1] MorningDove Company manufactures one model of birdbath, which is very popular. Morning

E5-2 Determining Cost Behavior and Calculating Expected Cost [LO 5-1] 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 02,000 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 ($150 fixed) Supervisor's salary Maintenance ($320 fixed) Depreciation Total Cost $ 2,300 6,700 580 3,200 490 750 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). (Round your per unit value to 2 decimal places.) Production Costs Behavior Direct Materials Variable Direct labor Variable Utilities Mixed Supervisor's Salary Fixed Maintenance Mixed Depreciation Fixed Rate per Unit per Unit per Unit per Unit per Unit per Unit per Month per Month per Month per Month per Month per Month 2. Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your variable cost per unit to 2 decimal places.) Total Variable Cost per Unit Total Fixed Cost per Month 3. State Morning Dove's linear cost equation for a production level of 0-2,000 units. Enter answer as an equation in the form of y = a + bx. (Round your variable cost per unit to 2 decimal places.) Total Cost = 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. (Round Variable cost per unit to 2 decimal places.) + = y

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