Method of Least Squares, Developing and using the Cost Formula The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety- six data points from monthly data were used for the regression. The following computer output was recelved: Intercept 158,300 Slope 240 The cost driver used was number of parts inspected. Required: 1. What is the cost formula? Total cost of recelving -