Write a Linear Cost Function Equation for Each of the Following

question 190

Essay

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 labour is $20 per hour.
b.Direct materials cost $8.00 per cubic metre.
c.Utilities have a minimum charge of $2,000 plus a charge of $0.05 per kilowatt hour.
d.Factory supplies average $10 per day plus $1.00 for each machine-hour per day.
e.Total manufacturing amortization includes $5,000 for straight-line plant amortization plus machinery amortization of $100 for each day operated.

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