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 materials cost is $.75 per kilo.
b.Direct labour cost is $16.75 per hour.
c.Car rental has a fixed fee of $75.00 per day plus $.50 per kilometre driven.
d.Machine operating costs include $350 of maintenance per month,and $5.00 of coolant usage costs for each day the machinery is in operation.
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Question

Quizplus · Accepted Answer

The Answer of 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 materials cost is $.75 per kilo.
b.Direct labour cost is $16.75 per hour.
c.Car rental has a fixed fee of $75.00 per day plus $.50 per kilometre driven.
d.Machine operating costs include $350 of maintenance per month,and $5.00 of coolant usage costs for each day the machinery is in operation.
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Write a Linear Cost Function Equation for Each of the Following