Morning Dove Company manufactures one model of birdbath, which is very popular.

Question

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 0-1,600 units and monthly production costs for the production of 1,200 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 ($250 fixed) Depreciation Total Cost 2,300 7,500 620 3,300 480 800 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). (Round your per unit value to 2 decimal places.) Rate Production Costs Behavio Direct Materials Direct labor Utilities Supervisor's Salary Fixed Maintenance Depreciation per Unit per Unit per Unit per Unit per Unit per Unit per Month per Month per Month per Month per Month per Month riable Variable ixed ixed Fixed

Explanation / Answer

Schedule :

Production Costs Behaviour Rate Direct material Variable 1.92 per unit 0 Per month Direct labour Variable 6.25 per unit 0 Per month Utilities Mixed 0.43 per unit 100 per month Supervisory's salary Fixed 0 per unit 3300 Per month Maintenance Mixed 0.19 per unit 250 per month Depreciation Fixed 0 Per unit 800 per month

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