Direct Labor Hours 45,000 63,000 Manufacturing Overhead $295,000 $318,000 $323,000 $247,250 $178,200 $165,500 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 ased on this data, what is the linear cost equation? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. D 57,000 52,000 34,000 24,000
Direct Labor Hours 45,000 63,000 Manufacturing Overhead $295,000 $318,000 $323,000 $247,250 $178,200 $165,500 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 ased on this data, what is the linear cost equation? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. D 57,000 52,000 34,000 24,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
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Transcribed Image Text:Family Fun Time, Inc. makes board games. The following data pertains to the last six months:
Manufacturing Overhead
Direct Labor Hours
45,000
63,000
57,000
Month 1
Month 2
Month 3
Month 4
Month 5
$247,250
$178,200
$165,500
Month 6
Based on this data, what is the linear cost equation? (Round intermediary calculations to the nearest cent. Use the "high" data month to calculate your final answer. Do not use the "low" month, as it will result in an approximation of the cost.)
52,000
34,000
24,000
O A. y = $0.26X + $152,500
O B. y = $5.40X + $33,100
O C. y = $3.91X + $71,670
O D. Cannot be determined from information given.
$295,000
$318,000
$323,000
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