Write a Cost Function for the Problem

question 29

Multiple Choice

Write a cost function for the problem. Assume that the relationship is linear.
-A moving firm charges a flat fee of $40 plus $35 per hour. Let C(x) be the cost in dollars of using the moving firm for x hours.

• A)C(x)= 40x + 35
• B)C(x)= 35x + 40
• C)C(x)= 35x - 40
• D)C(x)= 40x - 35

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Definitions:

Total Direct Materials Cost Variance

The difference between the actual cost of direct materials used in production and the standard cost of those materials.

Fixed Overhead Cost

Expenses that do not change with the level of production or sales, such as rent, salaries, and insurance.

Volume Variance

A measure used in budgeting and accounting to show the difference between expected (budgeted) and actual sales volumes, affecting revenue or costs.

Direct Labor Time Variance

The difference between the estimated time to complete a task and the actual time taken, affecting cost management in manufacturing.