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Author Question: Mountain Manufacturing Inc. ran its machines in March, a slow month, for 410 hours for a total cost ... (Read 20 times)

big1devin

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on: Mar 6, 2021

Question 1

List and briefly describe the six steps in estimating a cost function under quantitative analysis.

Question 2

Mountain Manufacturing Inc. ran its machines in March, a slow month, for 410 hours for a total cost of $63,000. In July, a peak month, the freezer ran for 756 hours for a total cost of $92,800. 

Required: 
a.  What is the cost estimating equation for the department if hours of freezer use are used as the cost driver? 
b.  What is the estimated total cost at an operating level of 600 hours?
Horngren's Cost Accounting: A Managerial Emphasis ¦ Datar, Rajan ¦ 16th Edition
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Marked as best answer by big1devin on Mar 6, 2021

Cnarkel

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Reply #1 on: Mar 6, 2021
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big1devin

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Reply 2 on: Mar 6, 2021
Excellent

TheDev123

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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