Question
Lacourse Incorporated's inspection costs are listed below: Units Produced Inspection Costs January 417 $ 6,104 February 367 $ 5,626 March 436 $ 6,319 April 451
Lacourse Incorporated's inspection costs are listed below:
| Units Produced | Inspection Costs | |
|---|---|---|
| January | 417 | $ 6,104 |
| February | 367 | $ 5,626 |
| March | 436 | $ 6,319 |
| April | 451 | $ 6,457 |
| May | 393 | $ 5,876 |
| June | 368 | $ 5,629 |
| July | 443 | $ 6,384 |
| August | 394 | $ 5,889 |
Management believes that inspection cost is a mixed cost that depends on units produced.
Using the least-squares regression method, the estimate of the variable component of inspection cost per unit produced is closest to:
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
Fundamental Managerial Accounting Concepts
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
8th edition
978-1259569197
