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Write a Linear Cost Function Equation for Each of the Following

Question 36

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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 labor is $20 per hour.
b. Direct materials cost $18.40 per cubic yard.
c. Utilities have a minimum charge of $2,000, plus a charge of $0.10 per kilowatt-hour.
d. Machine operating costs include $400,000 of machine depreciation per year, plus $150 of utility costs for each day the machinery is in operation.

Correct Answer:

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a. y = $20X
b. y = $...

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