80.2K
Verified Solution
Link Copied!
Lacourse Inc.'s inspection costs are listed below:
| Units Produced | | Inspection Costs |
January | 416 | | | $ | 6,102 |
February | 366 | | | $ | 5,625 |
March | 435 | | | $ | 6,317 |
April | 450 | | | $ | 6,455 |
May | 392 | | | $ | 5,875 |
June | 367 | | | $ | 5,628 |
July | 442 | | | $ | 6,382 |
August | 393 | | | $ | 5,888 |
|
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:
Multiple Choice
Answer & Explanation
Solved by verified expert