Question: Required information E5-4 and E5-5 [LO 5-1, 5-5) (The following information applies to the questions displayed below.) Morning Dove Company manufactures one model of birdbath,




Required information E5-4 and E5-5 [LO 5-1, 5-5) (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 0-1,500 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 E5-4 (Static) Determining Cost Behavior and Calculating Expected Cost [LO 5-1] 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 01,500 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Required 4 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.) Behavior Rate Production Costs Direct materials per Unit per Month Direct labor per Unit per Month Utilities per Unit per Month Supervisor's salary per Unit per Month Maintenance per Unit per Month Depreciation per Unit per Month Required 1 Required 2 Required 3 Required 4 Determine the total fixed cost per month and the variable cost per unit for Morning Dove. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total variable cost per unit Total fixed cost per month Required 1 Required 2 Required 3 Required 4 State Morning Dove's linear cost equation for a production level of 0-1,500 units. Enter answer as an equation in the form of y = a + bx. (Round your intermediate calculations and variable cost per unit to 2 decimal places.) Total cost = + X Required 1 Required 2 Required 3 Required 4 Calculate Morning Dove's expected total cost if production increased to 1,200 units per month. Enter answer as an equation ir the form of y = a + bx. (Round Variable cost per unit to 2 decimal places.) a + b = y $ 0
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