Question
Lacourse Inc.'s inspection costs are listed below: Units Produced Inspection Costs January 416 $ 6,102 February 366 $ 5,625 March 435 $ 6,317 April 450
Lacourse Inc.'s inspection costs are listed below:
| Units Produced | Inspection Costs | |||||
| January | 416 | $ | 6,102 | |||
| February | 366 | $ | 5,625 | |||
| March | 435 | $ | 6,317 | |||
| April | 450 | $ | 6,455 | |||
| May | 392 | $ | 5,875 | |||
| June | 367 | $ | 5,628 | |||
| July | 442 | $ | 6,382 | |||
| August | 393 | $ | 5,888 | |||
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:
Multiple Choice
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$9.98
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$9.27
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$9.88
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$14.85
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Fundamental accounting principle
Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta
21st edition
1259119831, 9781259311703, 978-1259119835, 1259311708, 978-0078025587
