Y=$9,000/week + ($6 x direct labor hours); R^2=.10 Y=$20,000/week + ($14 x numbe

Question

Y=$9,000/week + ($6 x direct labor hours); R^2=.10

Y=$20,000/week + ($14 x number of boards completed); R^2=.40

Y=$5,000/week + ($350 x average cycle time); R^2=.80

2. Assume that American Micro Devices prices it products by adding a percentage markup to its product costs. Product costs include assembly labor, components, and support costs. Using each of the cost functions, compute the circuit board portion of the support cost of an order that used the following resources: a. Effectively used the capacity of the assembly department for 3 weeks b. Assembly labor hours: 20,000 c. Number of boards: 6,000 d. Average cycle time: 180 hours

Explanation / Answer

Y = 9000*3 + 6*20000 = 147000

Y = 20000*3 + 14*6000 = 144000

Y = 5000*3 + 350*180   =   78000

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