Chapter 2 - Managerial Accounting and Cost Concepts - Exercises - Page 56: Exercise 2-8

1. 0.074; 4200 2. Y= 4200 + 0.074X 3. $10.120

1. Variable cost per hour: $(\frac{(0.114\times105,000)-(0.134 \times 70,000)}{105,000-70,000}) = 0.074$ Fixed cost = $((0.114\times105,000)-(0.074 \times 105,000)=4.200$ 2. $Y=a + bX =4200 + 0.074X$ 3. Total cost formula: $4200 + 0.074X = 4200 + (0.74\times80000) =10.120$