Refer to the information in Exercise E3-22 for Wyoming Wholesale.

a. Using the least squares method, develop the equation for predicting weekly receiving report costs based on the number of shipments received.

b. What is the predicted amount of receiving report costs for a month (assume a month is exactly four weeks) in which 165 shipments are received?

Data From Exercise E3-22:-

Porta Light manufactures a high-quality LED flashlight for home/office use. Data pertaining to the company's operations for the year are as follows:

The FOH rate is based on units of production based on an expected production capacity of 100,000 units per year.

Transcribed Image Text:

Production for the year.. Sales for the year (sales price per unit, $8) Beginning inventory... Costs to produce one unit (This year and prior year): Direct material... Direct labor... Variable overhead. Fixed overhead.. Selling and administrative costs: Variable (per unit sold) Fixed (per year).. 45,000 units 48,750 units 8,750 units $3.60 1.00 0.60 0.40 $0.40 $150,000