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WMEJ is an independent television station: Cost per Broadcast

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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 station's activity will be 420 broadcast hours?

Total cost
Production crew $
Supervisory employees

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

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

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Solution provided by:
Carol Sargent, PhD
Education
  • BSc, University of Virginia
  • MSc, University of Virginia
  • PhD, Georgia State University
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