A manufacturing company is labor-intensive. During the period, the company incurred total indirect manufacturing labor...
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A manufacturing company is labor-intensive. During the period, the company incurred total indirect manufacturing labor costs of $9,600 and total labor hours used were 250. The manager and the management accountant determine that over the period the indirect manufacturing labor costs are mixed costs with only one cost driver which is labor-hours. They separated the total indirect manufacturing labor costs into costs that are fixed ($2,100 based on a maximum level of 840 hours of labor) and costs that are variable ($7,500 based on the number of labor-hours used). Accordingly, a linear indirect manufacturing labor cost function is established. The company has estimated 300 labor hours during the next period. Required: (Enter your numeric answer for each requirement in the given answer box; Do not include dollar sign or comma in your answer; 3 points each) A) What is the amount of the constant (intercept) in the company's linear indirect manufacturing labor cost function? B) What is the amount of the slope coefficient in the company's linear indirect manufacturing labor cost function
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