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Fixed cost & variable cost

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Television station hours for university vary. The following is for two different months:

Cost Item Cost Behavior Cost Amount Broadcast hours/month
Production Crew Variable
July $4875 390
September $8000 640
Supervisory employees Fixed
July $5000 390
September $5000 640

a. what is the cost per broadcast hour during July and September for each of these cost items?

b. What is the total incurred for each of these costs during December if the TV stations activity is 420 braodcast hours?

c. What will be the cost per broadcast hour in December for each of the cost items?

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Solution Summary

The answer contains computation of fixed cost per hour, variable cost per hour and the cost per hour

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