Jackson Company manufactures air-conditioning compressors. Based on past experience, Jackson has found that its total cost of moving materials can be represented by the following formula: Cost of moving materials = $90,000 + $0.20X, where X =

pounds of materials moved. The activity of moving materials uses forklifts, forklift operators, crates, and fuel (for the forklift). During 2001, Jackson moved 200,000 pounds of materials.lop5

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Required: 1. Identify the activity, its resources (inputs), and its driver (output measure). 2. Identify which resources are likely to vary with the driver over the relevant range. Assume the relevant range is 150,000 to 250,000 pounds of materials. 3. What is the total cost of moving materials incurred by Jackson in 2001? total fixed cost? total variable cost? 4. What is the cost of moving materials per pound moved? 5. What is the fixed cost per pound moved? 6. What is the variable cost of moving materials per pound moved? 7. Recalculate Requirements 4, 5, and 6 for the following levels of activity: (a) 150,000 pounds and (b) 250,000 pounds moved. Explain this outcome.