Refer to the company information in Exercise 3-33.
Required:
1. What is the cost formula for a year?
2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 29,000 parts are inspected.

Data From Exercise 3-33: 

The method of least squares was used to develop a cost equation to predict the cost of receiving. Ninety-six data points from monthly data were used for the regression. The following computer output was received:

                       Intercept             23,100
                       Slope                       316

The driver used was number of parts inspected.

Required:
  1.  What is the cost formula?
  2.  Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, variable rate, and fixed cost per month.
  3.  Using the cost formula, predict the cost of parts inspection for a month in which 2,500 parts are inspected.