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Method of Least Squares, Developing and Using the Cost Formula from monthly data were used for the regression. The following computer output was received: Intercept
Method of Least Squares, Developing and Using the Cost Formula from monthly data were used for the regression. The following computer output was received:
Intercept
Slope
The cost driver used was number of parts inspected.
Required:
What is the cost formula?
Total cost of receiving per month.
Independent variable
Dependent variable
Variable rate per professional hour
per part inspected
Fixed cost per month
Using the cost formula, predict the cost of receiving for a month in which parts are inspected.
Total cost of receiving $
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