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Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex quality control process. The company has observed quality control costs
Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex quality control process. The company has observed quality control costs as follows over the past 16 weeks: Total Quality Week Units Produced Control Costs 1 26 $ 560 2 17 $ 450 32 $ 700 4 14 $ 400 20 $ 500 6 29 $ 600 7 22 $ 517 BN 99 8 23 $ 528 9 19 $ 457 10 21 $ 485 11 24 $ 539 12 31 $ 637 13 28 $ 588 14 16 $ 404 15 18 $ 444 16 32 $ 622 For planning purposes, the company's management wants to know the amount of variable quality control costs per unit and the total fixed quality control costs per week. Required: 1. Using the least-squares regression method, estimate the variable and fixed elements of the quality control cost. (Round variable cost to 2 decimal places.) Fixed cost Variable cost per unit Required: 1. Using the least-squares regression method, estimate the variable and fixed elements of the quality control cost. (Round variable cost to 2 decimal places.) Fixed cost Variable cost per unit 2. If the company produces 22 gas fireplaces next week, what are the expected total quality control costs? (Round intermediate and Final value to 2 decimal places.) Total expected cost $ 13.54
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