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Laborn Inc.'s inspection costs are listed below: Units Produced Inspection Costs March 163 $ 9,658 April 209 $ 11,141 May 159 $ 9,451 June 232
Laborn Inc.'s inspection costs are listed below:
Units Produced | Inspection Costs | |||||
March | 163 | $ | 9,658 | |||
April | 209 | $ | 11,141 | |||
May | 159 | $ | 9,451 | |||
June | 232 | $ | 12,435 | |||
July | 286 | $ | 13,305 | |||
August | 256 | $ | 12,701 | |||
September | 258 | $ | 12,824 | |||
October | 234 | $ | 12,553 | |||
Management believes that inspection cost is a mixed cost that depends on the number of units produced. Using the least-squares regression method, the estimates of the variable and fixed components of inspection cost would be closest to:
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