Question
Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Produced Inspection Costs April 906 $ 16,312 May 951 $ 16,700 June 912
Inspection costs at one of Ratulowski Corporation's factories are listed below:
Units Produced | Inspection Costs | ||||||
April | 906 | $ | 16,312 | ||||
May | 951 | $ | 16,700 | ||||
June | 912 | $ | 16,365 | ||||
July | 896 | $ | 16,210 | ||||
August | 918 | $ | 16,394 | ||||
September | 903 | $ | 16,280 | ||||
October | 920 | $ | 16,432 | ||||
November | 860 | $ | 15,850 | ||||
December | 899 | $ | 16,238 | ||||
Management believes that inspection cost is a mixed cost that depends on units produced.
The excel least squares regression output is as follows:
Using the output above identify the following:
What is the measure of goodness of fit? (round to 2 decimal place) | |
What is the variable cost per unit based on the regression equation? (round to 2 decimal place) | $ |
What is the fixed cost portion of Inspection Costs? (round to 2 decimal place) | $ |
Cost equation for Inspection Costs (in the linear equation format) | Y= |
Estimated Inspection costs when 973 units are produced (round to nearest whole dollar) | $ |
SUMMARY OUTPUT Regression Statistics Multiple R 0.99826 R Square 0.99652 Adjusted 0.99603 Standard 14.1791 Observati 9 ANOVA df AS gnificance F Regressior Residual Total 1 403337 403337 2006.197.2E-10O 7 1407.32 201.046 8 404744 P-value Intercept 7870.17 188.46641.7591 1.2E-09 7424.528315.82 7424.52 8315.82 X Variable 9.30183 0.20767 44.7905 7.2E-108.81076 9.7929 8.81076 9.7929 Coefficientandard Err t Stat Lower 95%Upper 95%ower 95OSpper 95.0%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started