Write a linear cost function equation for each of the following conditions. Use y for estimated costs and X for activity of the cost driver. a. Direct materials cost is $2.70 per pound  b. Total cost is fixed at $800 per month regardless of the number of units produced.  c. Auto rental has a fixed fee of $90.00 per day plus $1.75 per mile driven.  d. Machine operating costs include $1,000 of maintenance per month, and $15.00 of coolant usage costs for each day the machinery is in operation.

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Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.