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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: Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 BBFS VOU AWNA Units Produced 44 35 50 32 38 47 40 41 37 39 42 49 46 34 36 68 Total Quality Control Costs $ 790 $ 630 $ 870 $ 610 $ 710 $ 830 $ 719 $ 733 $ 636 $ 672 $ 748 $ 887 $ 818 $ 563 $ 622 $ 870 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 .. 13 14 15 16 46 34 36 68 $ 818 $ 563 $ 622 $ 870 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 2. If the company produces 40 gas fireplaces next week, what are the expected total quality control costs? (Round intermediate and final value to 2 decimal places.) Total expected cost
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