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Hakika had just transitioned into a different department in the company. Hoping to make a good impression on her boss, Hakika said she was
Hakika had just transitioned into a different department in the company. Hoping to make a good impression on her boss, Hakika said she was going to model the inspection costs over the past 12 months in an effort to better control them and predict them going forward. Her boss seemed skeptical but was looking forward to her analysis. Data for the previous 12 months is as follows for the inspection costs, along with two possible cost drivers: inspection hours and number of inspections. Number of Inspection Hours Inspection Costs Inspections 440 145 $56,070 245 104 41,265 156 75 39,040 602 237 96,540 280 160 65,700 148 88 55,890 745 139 105,430 720 179 132,400 480 234 123,760 503 215 99,700 343 183 89.775 392 128 53,550
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