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Coolant usage costs for each day the machinery is in operation

Coolant usage costs for each day the machinery is in operation



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 $1.70 per pound 
b.	Total cost is fixed at $8,000 per month regardless of the number of units produced.
c.	Auto rental has a fixed fee of $80.00 per day plus $2.00 per mile driven.
d.	Machine operating costs include $1,000 of maintenance per month, and $12.00 of coolant usage costs for each day the machinery is in operation. 




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30 Mar 2016

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  1. Genius

    Coolant usage costs for each day the machinery is in operation

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