Write a Linear Cost Function Equation for Each of the Following

question 19

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 materials cost is $1.50 per pound.
b. Direct labor cost is $33.50 per hour.
c. Auto rental has a fixed fee of $150.00 per day plus $1.00 per mile driven.
d. Machine operating costs include $700 of maintenance per month, and $10.00 of coolant usage costs for each day the machinery is in operation.

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Definitions:

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor directly used to create the product.

Time Ticket

A time ticket is a document or record used to track the amount of time an employee spends on various tasks or projects, typically for billing or payroll purposes.

Pay Stub

A document attached to a paycheck that details the employee's pay information, including earnings and deductions.

Employees' Earnings Record

A document that tracks the amount of money paid to an employee over a period, including wages, salaries, and bonuses.