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What is the cost estimating equation for the department

What is the cost estimating equation for the department



The managers of the production department have decided to use the production levels of 2015 and 2016 as examples of the highest and lowest years of operating levels. Data for those years are as follows: 

	Year	Chemicals used	Overhead Costs
	2015	336,000 gallons	$292,800
	2016	288,000 gallons	$254,400
Required: 
What is the cost estimating equation for the department if gallons of chemicals are used as the cost driver? 




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30 Mar 2016

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  1. Genius

    What is the cost estimating equation for the department

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