Question:
WMTB is an independent television station run by a major state university. The station's broadcast hours vary during the year depending on whether the university is in session. The station's production crew and supervisory costs are as follows for August and October.
Cost Item Cost
Behavior Cost
Amount Broadcast Hours
during Month
Production Crew Variable
August $ 5,940 450
October 8,712 660
Supervisory employees Fixed
August 5,900 450
October 5,900 660
Required:
1. Compute the cost per broadcast hour during August and October for each of these cost items. (Round your answers to 2 decimal places.)
2. What will be the total amount incurred for each of these costs during December, when the station's activity will be 480 broadcast hours?
3. What will be the cost per broadcast hour in December for each of the cost items? (Round your answers to 2 decimal places.)