Answer:
Y = 4,000 + 0.5X
Step-by-step explanation:
Given that,
Activity and Utility cost for two recent periods are as follows:
Activity level (units):
Period 1 = 8,000
Period 2 = 5,000
Utility cost:
Period 1 = 8,000
Period 2 = 6,500
The cost formula for utility cost:
Y = 4,000 + 0.5X
If Y(Utility cost period 1) = 8,000 and X(Activity cost period 1) = 8,000, then
From the above equation,
$8,000 = 4,000 + 0.5 × 8,000
$8,000 = 4,000 + 4,000
$8,000 = $8,000