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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 $186,000. If Jamison projects it will be working 204,000 hours in 2019, what is the projected total cost

Answer :

Abiolataiwo2015go

Answer:

$7,326,000

Explanation:

Calculation for what is the projected total cost

Using this formula

Projected total cost=(Projected hours*Variable cost per hour of labor)+Fixed cost

Let plug in the formula

Projected total cost=(204,000 hours*$35)+$186,000

Projected total cost=$7,140,000+$186,000

Projected total cost=$7,326,000

Therefore the projected total cost will be $7,326,000

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