Lacourse Incorporated's inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on units produced.Using the least-squares regression method, the estimate of the variable component of inspection cost per unit produced is closest to:

Question

Lacourse Incorporated's inspection costs are listed below:  Management believes that inspection cost is a mixed cost that depends on units produced.Using the least-squares regression method, the estimate of the variable component of inspection cost per unit produced is closest to:

Quizplus · Accepted Answer

Using the least-squares regression method, the estimate of the variable component of inspection cost per unit produced is calculated by finding the slope coefficient in the regression equation. In this case, the slope coefficient is $10.29, which is the variable cost per unit produced. Therefore, the best choice is option C.

Lacourse Incorporated's Inspection Costs Are Listed Below: Management Believes