Assume that a manufacturer of specialized machine parts developed the following total cost-estimating equation for manufacturing...

 

Transcribed Image Text:

Assume that a manufacturer of specialized machine parts developed the following total cost-estimating equation for manufacturing costs. Y = $16,000+ $1,250 (actual units) a. What is total estimated manufacturing costs if 200 units are produced? $0 b. The company created a scatter diagram of actual units and actual manufacturing costs for the last six months. The company noticed a wide this analysis? The cost estimating line + an accurate predictor of total manufacturing costs. c. What is a possible reason for why the company changed its total cost-estimating equation to the following? Y= $16,000+ $130 (labor hours) Because the parts are In a labor intensive operation, + the parts may not take the same amount of time to produce. may be a better predictor of total Assume that a manufacturer of specialized machine parts developed the following total cost-estimating equation for manufacturing costs. Y = $16,000+ $1,250 (actual units) a. What is total estimated manufacturing costs if 200 units are produced? $0 b. The company created a scatter diagram of actual units and actual manufacturing costs for the last six months. The company noticed a wide this analysis? The cost estimating line + an accurate predictor of total manufacturing costs. c. What is a possible reason for why the company changed its total cost-estimating equation to the following? Y= $16,000+ $130 (labor hours) Because the parts are In a labor intensive operation, + the parts may not take the same amount of time to produce. may be a better predictor of total

Answer rating: 100% (QA)

Lets go through each part of the question a What is the total estimated manufacturing costs if 200 units are produced Given the total costestimating e... View the full answer