Compute the cost per broadcast hour


Task: WMEJ 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 July and September.

Cost Item    Cost
Behavior    Cost
Amount    Broadcast Hours
during Month
Production crew    Variable
July             $4,875    390
September    8,000    640

Supervisory employees    Fixed
July              5,000    390
September    5,000    640

Required:

1. Compute the cost per broadcast hour during July and September for each of these cost items.

Cost per Broadcast Hour

Cost Item                         July    September
Production crew             $per hr.    $per hr.
Supervisory employees    per hr.    per hr.

2. What will be the total amount incurred for each of these costs during December, when the stationâ??s activity will be 420 broadcast hours? (Round your intermediate answers to two decimal places. Omit the "$" sign in your response.)

Total cost
Production crew    $
Supervisory employees

3. What will be the cost per broadcast hour in December for each of the cost items? (Round your answers to 2 decimal places. Omit the "$" sign in your response.)

Cost Item    Cost per Broadcast Hour
in December
Production crew             $ per hr.
Supervisory employees    per hr.

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Accounting Basics: Compute the cost per broadcast hour
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