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EX Algo Behavior of Fixed and Variable Costs; Television Station LO
WMEJ is an independent television station run by a major state university. The stations broadcast hours vary during the year depending on whether the university is in session. The stations productioncrew and supervisory costs are as follows for July and September.
Cost ItemCost BehaviorCost AmountBroadcast Hours during MonthProduction crewVariableJuly$ SeptemberSupervisory employeesFixedJulySeptember
Required:
Compute the cost per broadcast hour during July and September for each of these cost items.
What will be the total amount incurred for each of these costs during December, when the stations activity will be broadcast hours?
What will be the cost per broadcast hour in December for each of the cost items?
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