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Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost-estimating equation for manufacturing costs. Y = $8,000 $1,250
Evaluating Selected Cost Driver Assume that a manufacturer of specialized machine parts developed the following total cost-estimating equation for manufacturing costs. Y = $8,000 $1,250 (actual units) a. What is total estimated manufacturing costs if 100 units are produced? $Answer 0 b. The company created a scatter diagram of actual units and actual manufacturing costs for the last six months. The company noticed a wide dispersion of observations around the cost-estimating line. What conclusion can be drawn from this analysis? The cost estimating line Answer an accurate predictor of total manufacturing costs. c. What is a possible reason for why the company changed its total cost-estimating equation to the following? Y = $8,000 $130 (labor hours) Because the parts are Answer , the parts may not take the same amount of time to produce. In a labor intensive operation, Answer may be a better predictor of total Answer . Please answer all parts of the
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