(Appendix 2A)Laborn Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method, the estimates of the variable and fixed components of inspection cost would be closest to:
A)$43.04 per unit plus $10, 648 per month
B)$34.63 per unit plus $2, 089 per month
C)$34.78 per unit plus $2, 044 per month
D)$36.00 per unit plus $1, 714 per month

Question

(Appendix 2A)Laborn Inc.'s inspection costs are listed below:  Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method, the estimates of the variable and fixed components of inspection cost would be closest to:
A)$43.04 per unit plus $10, 648 per month 
B)$34.63 per unit plus $2, 089 per month 
C)$34.78 per unit plus $2, 044 per month 
D)$36.00 per unit plus $1, 714 per month

Quizplus · Accepted Answer

Using Microsoft Excel, the solution is:
 11eaa0c8_9718_3238_9cb2_e9d2f0b14e80_TB2487_00