Delreal 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)$20.27 per unit plus $5,905 per month
B)$44.44 per unit plus $10,867 per month
C)$20.68 per unit plus $5,807 per month
D)$20.57 per unit plus $5,837 per month

Question

Delreal 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)$20.27 per unit plus $5,905 per month 
B)$44.44 per unit plus $10,867 per month 
C)$20.68 per unit plus $5,807 per month 
D)$20.57 per unit plus $5,837 per month

Quizplus · Accepted Answer

The Answer is D