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kolezko [41]
3 years ago
5

Steeplechase Building Specialties manufactures metal stud to accommodate commercial framing contractors in the United States. Th

e managerial accountant reported to the operations manager that there is an order to manufacture
2,300

bundles of metal stud during the month. The managerial accountant reported the following? information:

Variable

Coefficient

Constant

$$170

Independent variable

$260

Determine the cost equation for the managerial accountant and predict the operating costs at a volume of

2,300

bundles of metal stud at Steeplechase Building Specialties.
Business
1 answer:
forsale [732]3 years ago
3 0

Answer:

Explanation:

The cost equation is shown below:

Y = Constant + Volume × Independent variable

where,

Y = operating costs

And, The other items values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $170 + 2,300 units × $260

= $170 + $598,000

= $598,170

Hence, the cost equation is displayed above and the operating costs are $598,170

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