10-21 Estimating a cost function using the Account Analysis Approach. Khan Sunil Enterprises, a software engineeringfirm, uses the account analysis approach to identify the cost behavior of production costs for its premium software. Thefollowing details relate to the company's activities for June 2019 in which it produced 350 units.TotalVariableFixedMaterials used in production 270,000Labor costsProduction facility costsTotal production costR 10,0002 4,0002270,0002134,000R130,0003 3,0003 17,0002103,000100,0002507,0003500,000Required1. Describe the production cost in the equation form y = a + bx2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month.3. Comment on the usefulness of the estimation to management of the company.

Cost is the amount of money which a company must incur so that the production of finished goods can…

1. Describe the production cost in the equation form y a+ 8X 2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month. 3. Comment on the usefulness of the estimation to management of the company.

1. Describe the production cost in the equation form y a+ 8X 2. Assume the company intends to produce 400 units next month, calculate the total production costs for the month. 3. Comment on the usefulness of the estimation to management of the company.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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