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

question 69

Essay

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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Definitions:

Transformational Leaders

Individuals who inspire and motivate followers to achieve extraordinary outcomes by transforming their beliefs and values.

Transactional Leaders

Leaders who focus on the exchanges between themselves and their followers, using rewards and punishments to achieve organizational goals.

Exchanges

Transactions or communications between individuals or entities.

Managerial Grid

Identifies five leadership styles: 1,1 impoverished; 9,1 sweatshop; 1,9 country club; 5,5 status quo; and 9,9 fully functioning.