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 yard.
c.Utilities have a minimum charge of $1,000, 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.

Question

Quizplus · Accepted Answer

The Answer is a.y = $10X
b.y = $9.20X
c.y = $1,000 + $0.05X
d.y = $200,000 + $75X

Write a Linear Cost Function Equation for Each of the Following