Question

WMEJ is an independent television station run by a major state university. The station’s broadcast hours...

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 $ 4,140 360
September 7,360 640
Supervisory employees Fixed
July 5,000 360
September 5,000 640

Required:

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

2. What will be the total amount incurred for each of these costs during December, when the station’s activity will be 390 broadcast hours?

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

Compute the cost per broadcast hour during July and September for each of these cost items. (Round your answers to 2 decimal places.)

Cost per Broadcast Hour
Cost Item July September
Production crew per hour per hour
Supervisory employees per hour per hour

What will be the total amount incurred for each of these costs during December, when the station’s activity will be 390 broadcast hours?

Total Cost
Production crew
Supervisory employees

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

Cost Item Cost per Broadcast Hour in December
Production crew per hour
Supervisory employees per hour

Homework Answers

Answer #1
Requirement 1
Cost per Broadcast Hour
Cost Item July September
Production crew 11.50 per hour 11.50 per hour
(4140/360) (7360/640)
Supervisory employees 13.89 per hour 7.81 per hour
(5000/360) (5000/640)
Requirement 2
Total Cost
Production crew 4485
(390*11.50)
Supervisory employees 5000
(Fixed)
Requirement 3
Cost Item Cost per Broadcast Hour in December
Production crew 11.50 per hour
(4485/390)
Supervisory employees 12.82 per hour
(5000/390)
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