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:

Verified
a.y = $10X
b.y = $15...View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Correct Answer:
Verified
b.y = $15...
View Answer
Unlock this answer now
Get Access to more Verified Answers free of charge
Q63: The incremental unit-time learning model with a
Q67: A flat or slightly sloped regression line
Q87: A cost function is a _.<br>A) process
Q95: Midose's Stables used two different independent
Q98: Isondo's TV and Appliance Store is
Q100: The cost function y = 2,000 +
Q137: In regression analysis, the term "goodness of
Q146: In a cost function y = 18,000,
Q161: The coefficient of determination (r<sup>2</sup>)measures the percentage
Q177: The learning-curve models presented in the text