Solved

Write a Linear Cost Function Equation for Each of the Following

Question 96

Essay

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 labor is $10 per hour.
b.Direct materials cost $15.60 per cubic yard.
c.Utilities have a minimum charge of $5,000,plus a charge of $0.30 per kilowatt-hour.
d.Machine operating costs include $300,000 of machine depreciation per year,plus $100 of utility costs for each day the machinery is in operation.

Correct Answer:

verifed

Verified

a.y = $10X
b.y = $15...

View Answer

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions