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Write a Linear Cost Function Equation for Each of the Following

Question 52

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Write a linear cost function equation for each of the following conditions.Use y for estimated costs and X for activity of the cost driver.
a.Direct manufacturing labour is $10 per hour.
b.Direct materials cost $9.20 per cubic metre.
c.Utilities have a minimum charge of $1000,plus a charge of $0.05 per kilowatt-hour.
d.Machine operating costs include $200 000 of machine depreciation per year,plus $75 of utility costs for each day the machinery is in operation.
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Correct Answer:

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a.y = $10X
b.y = $9....

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