Question

1. Botana Company constructed the following formula for monthly utility cost.
Total utility cost = $1,200 + ($8.10 × labor hours)
Assume that 775 labor hours are budgeted for the month of April.

Calculate the total variable utility cost for the month of April.

Group of answer choices

a. $1,200.00

b. $6,277.50

c. $7,477.50

d. $5,077.50

.

2.  Marigold Company makes furniture. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected as follows:

​

​	Electricity	Machine
Month	cost	hours
January	$8,000	600
February	7,200	650
March	7,500	580
April	8,200	690

​

​

Coefficients shown by a regression program are as follows:

​

Intercept	5,937
X Variable 1	2.8

​

Using the results of regression, what would be the total budgeted cost for electricity next month assuming that 620 machine hours are budgeted? (Round to the nearest dollar.)

Group of answer choices

a. $6,000

b. $5,440

c. $4,200

d. $7,673

.

3.

A time ticket does not include the _____.

a. wage rate of an employee

b. cost of materials used for a job

c. hours worked on each job

d. number of the job

e. signature of the department supervisor

Answer 1

Question-1:-

Answer:- option B($6277.5)

NOTES

Total utility cost =$1200+(8.1$*775hrs)=7477.5$

In this $1200 ​​​ is fixed so that variable utility cost is ($8.1*775)=6277.5$

Labour cost will change in accordance with specific hours worked during the month but the other cost will remain same.so it is treated as fixed cost.