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 manufacturing labor is $10 per hour.

b. Direct materials cost $15.60 per cubic yard.

c. Utilities have a minimum charge of $5,000, plus a charge of $0.30 per kilowatt-hour.

d. Machine operating costs include $300,000 of machine depreciation per year, plus $100 of utility costs for each day the machinery is in operation.

a)

y = $10x

b)

y = $15.6x

c)

y = $5000 + $0.3x

d)

y = $300000 + $100x

Explanation:

y for estimated costs and X for activity of the cost driver. Linear cost function is given as:

y = a + bx.

Where y is the cost being predicted, x is the cost driver, a is the fixed cost (intercept) and b is the variable cost per unit (slope)

a) Since Direct manufacturing labor is $10 per hour,  variable cost (b) =  Direct manufacturing labor = $10

Therefore:

y = $10x

b) variable cost (b) =  Direct materials cost = $15.60 per cubic yard.

Therefore:

y = $15.6x

c) Fixed cost (a) = utilities = $5000 and  variable cost (b) =  charges = $0.3 per kilowatt-hour. Therefore:

y = $5000 + $0.3x

d) Fixed cost (a) = Machine operating costs = $300000 and  variable cost (b) =  utility costs = $100 per day. Therefore:

y = $300000 + $100x

answer; drop shippers;

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.