
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 $15 per hour.
b.Direct materials cost $25.60 per cubic yard.
c.Utilities have a minimum charge of $500, plus a charge of $0.25 per kilowatt-hour.
d.Machine operating costs include $250,000 of machine depreciation per year, plus $100 of utility costs for each day the machinery is in operation.
Correct Answer:
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b.y = $25...
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