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Home Q & A Board Other Fields Homework Help Business Economics
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dxpayne dxpayne
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Posts: 930
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6 years ago
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 $.75 per kilogram.
b.   Direct labour cost is $16.75 per hour.
c.   Auto rental has a fixed fee of $75.00 per day plus $.50 per kilometre driven.
d.   Machine operating costs include $350 of maintenance per month, and $5.00 of coolant usage costs for each day the machinery is in operation.
Textbook 
Cost Accounting: A Managerial Emphasis, Canadian Edition

Cost Accounting: A Managerial Emphasis, Canadian Edition


Edition: 7th
Authors:
Read 73 times
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Replies
wrote...
#1
6 years ago
a.   y = $.75X
b.   y = $16.75X
c.   y = $75 + $0.50X
d.   y = $350 + $5X
dxpayne Author
wrote...
#2
5 years ago
I see. Hmm...

Thanks for confirming, will mark this solved.
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