Stanfil Corporation developed a cost function for manufacturing overhead costs of Y = $8,000 + $1.60X. Estimated manufacturing overhead costs at 10,000 units of production are
A)$16,000.
B)$17,600.
C)$24,000.
D)$26,000.

Question

Quizplus · Accepted Answer

The cost function is Y = $8,000 + $1.60X. For 10,000 units, substitute X with 10,000: Y = $8,000 + $1.60(10,000) = $8,000 + $16,000 = $24,000.

Stanfil Corporation Developed a Cost Function for Manufacturing Overhead Costs