Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour...
Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour of labor is $37 and the fixed cost was determined to be $253,000. If Jamison projects it will be working 129,000 hours in 2019, what is the projected total cost?
Homework Answers
Ans.
| Total cost | Variable cost + Fixed cost |
Fixed Cost = $253,000
Variable Cost
Variable Cost = Projected No. of Hours × Cost Per Hour
Variable Cost = 129,000 × $ 37 = $4,773,000
Projected Total Cost
Total Cost = $ 4,773,000 + $ 253,000 = $5,026,000
| PROJECTED TOTAL COST | $ 5,026,000 |
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Jamison Construction has implemented a cost estimation system
using regression analysis. The variable cost per hour...
Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour...
Jamison Construction has implemented a cost estimation system using regression analysis. The variable cost per hour of labor is $35 and the fixed cost was determined to be $125,000. If Jamison projects it will be working 200,000 hours in 2019, what is the projected total cost?
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