Steeplechase Building Specialties manufactures metal stud to accommodate commercial framing contractors in the United States
The managerial accountant reported to the operations manager that there is an order to manufacture 2,000 bundles of metal stud during the month. The managerial accountant reported the following information:
Variable Coefficient
Constant $120
Independent variable $220
Determine the cost equation for the managerial accountant and predict the operating costs at a volume of 2,000 bundles of metal stud at Steeplechase Building Specialties.
A) $120
B) $220
C) $340
D) $440,120
D
Explanation: D) y = 120 + ($220 × 2,000 ) = $440,120
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