Question
Lacourse Incorporated's inspection costs are listed below: Units Produced Inspection Costs January 440 $6,150 February 390 $5,649 March 459 $6,365 April 474 $6,503 May 416
Lacourse Incorporated's inspection costs are listed below:
| Units Produced | Inspection Costs | |
|---|---|---|
| January | 440 | $6,150 |
| February | 390 | $5,649 |
| March | 459 | $6,365 |
| April | 474 | $6,503 |
| May | 416 | $5,899 |
| June | 391 | $5,652 |
| July | 466 | $6,430 |
| August | 417 | $5,912 |
Management believes that inspection cost is a mixed cost that depends on units produced.
Using the least-squares regression method, the estimate of the fixed component of inspection cost per month is closest to:
Multiple Choice
-
$1,608
-
$5,649
-
$5,662
-
$1,650
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Managing The Audit Function A Corporate Audit Department Procedures Guide
Authors: Michael P. Cangemi, Tommie W. Singleton
3rd Edition
0471281190, 978-0471281191
