Question: Select a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.

Select a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver.
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Part 1
a. Direct materials cost is $1.40 per pound.
y = $1.40X
b. Total cost is fixed at $7,000 per month regardless of the number of units produced.
y = X + $7,000
c. Auto rental has a fixed fee of $70.00 per day plus $0.50 per mile driven.
y = $70.00+ $0.50X
d. Machine operating costs include $1,600 of maintenance per month, and $17.00 of coolant usage costs for each day the machinery is in operation.

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