Question

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

2,300

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.

Answer 1

Step-by-step 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