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
a Direct materials cost is $ per pound.
y $X
b Total cost is fixed at $ per month regardless of the number of units produced.
y X $
c Auto rental has a fixed fee of $ per day plus $ per mile driven.
y $ $X
d Machine operating costs include $ of maintenance per month, and $ of coolant usage costs for each day the machinery is in operation.
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