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Finder File Edit View Go Window Help ? 36% D\' ? E ?))) Sat Jun 16 8:46 PM Alex , ezto.mheducation.com Home alamo.edu McGraw-Hill Connect Chapter 5 Exercises Required: 1. Identity 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.) Costs Behavior Rate Direct Materials Direct labor Uülides Supervisor\'s Salary Maintenance Deprecation per Unit per Unit per Unit per Unit per Unit per Unit per Month per Month per Month par Month por Month per Month 2. Determine the total foxed cost per month and the variable cost per unit for Moming Dove. (Round your variable cost per unit to 2 decimal places.) Total Variable Coet per Unit Total Fixed Cost per Month 3. State Morning Dove\'s linear cost equation for a production lavel of 0-1,900 units. Enter answer as an equation in the form of y- abx. (Round your variable cost per unit to 2 decimal places.) i Costa 4. Calculate Morning Dove\'s expected total cost if production increased to 1.800 units per month. Enter answer as an equation in the form or y = a + b Round Variable cost per unit to 2 decimal places 0 popcorntime ap

Solution

Answers

Total

Variable

Per unit

Fixed

Direct Material

$          1,900.00

$                  1,900.00

$                           1.00

$               -  

Direct Labor

$          7,700.00

$                  7,700.00

$                           4.05

$               -  

Utilities

$             650.00

$                      510.00

$                           0.27

$     140.00

Supervisors Salary

$          3,200.00

$ 3,200.00

Maintenance

$             460.00

$                      120.00

$                           0.06

$     340.00

Depreciation

$             750.00

$     750.00

TOTAL

$       14,660.00

$                10,230.00

$                           5.38

$ 4,430.00

Behaviour

per unit

per month

Direct Material

Variable

$                          1.00

$                                -  

Direct Labor

Variable

$                          4.05

$                                -  

Utilities

Mixed

$                          0.27

$                      140.00

Supervisors Salary

Fixed

$                               -  

$                   3,200.00

Maintenance

Mixed

$                          0.06

$                      340.00

Depreciation

Fixed

$                               -  

$                      750.00

Total Variable cost

$                  5.38

Total Fixed cost per month

$          4,430.00

Total Cost = $ 4430 + $ 5.38x

a

+

b

x

X

=

y

$          4,430.00

+

$                          5.38

x

1,800 units

$ 14,114.00

Unit Sales price

-

Unit Variable Cost

=

Unit Contribution margin

$                24.00

-

$                          5.38

=

$        18.62

Unit Contribution margin

/

Unit Sales price

=

Contribution Margin ratio

$                18.62

/

$                        24.00

=

77.58%

Sales Revenue [2100 x $24]

$       50,400.00

Direct Material

$          2,100.00

Direct Labor

$          8,505.00

Utilities

$             567.00

Maintenance

$             126.00

Contribution Margin

$       39,102.00

Utilities

$             140.00

Supervisors Salary

$          3,200.00

Maintenance

$             340.00

Depreciation

$             750.00

Net Operating Income

$       34,672.00

	Total	Variable	Per unit	Fixed
Direct Material	$          1,900.00	$                  1,900.00	$                           1.00	$               -
Direct Labor	$          7,700.00	$                  7,700.00	$                           4.05	$               -
Utilities	$             650.00	$                      510.00	$                           0.27	$     140.00
Supervisors Salary	$          3,200.00			$ 3,200.00
Maintenance	$             460.00	$                      120.00	$                           0.06	$     340.00
Depreciation	$             750.00			$     750.00
TOTAL	$       14,660.00	$                10,230.00	$                           5.38	$ 4,430.00