Whyalla Storage ran its freezer in July,a slow month,for 500 hours for a total cost of $80 000.In February,a peak month,the freezer ran for 720 hours for a total cost of $114 000.
Required:
a.What is the cost estimating equation for the department if hours of freezer use are used as the cost driver?
b.What is the estimated total cost at an operating level of 600 hours?
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Question

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The Answer of Whyalla Storage ran its freezer in July,a slow month,for 500 hours for a total cost of $80 000.In February,a peak month,the freezer ran for 720 hours for a total cost of $114 000.
Required:
a.What is the cost estimating equation for the department if hours of freezer use are used as the cost driver?
b.What is the estimated total cost at an operating level of 600 hours?
_____________________________________________________________________________________________
_____________________________________________________________________________________________

Whyalla Storage Ran Its Freezer in July,a Slow Month,for 500