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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:
Regression Statistics Multiple R 0.99826 R Square 0.99652 Adjusted 0.99603 Standard1 14.1791 Observati 9 ANOVA df MS F gnificance F Regressior Residual Total 1 403337 403337 2006.19 7.2E-10 7 1407.32 201.046 8 404744 Coefficientandard Err P-value Intercept 7870.17188.46641.75911.2E-09 7424.528315.827424.52 8315.82 X Variable 9.30183 0.20767 44.7905 7.2E-10 8.81076 9.7929 8.81076 9.7929 t Stat ,-ower 95%Jpper 95%ower 95.09pper 95.0% 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 Estimated Inspection costs when 973 units are produced (round to nearest whole dollar)Step by Step Solution
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