Magnano Inc.’s inspection costs are listed below:
|
Units Produced |
Inspection Costs |
||
|
February |
927 |
$4579 |
|
|
March |
948 |
$4645 |
|
|
April |
968 |
$4701 |
|
|
May |
911 |
$4538 |
|
|
June |
958 |
$4676 |
|
|
July |
894 |
$4475 |
|
|
August |
974 |
$4760 |
|
|
September |
878 |
$4412 |
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 (Do not round intermediate calculations. Round your final answer to 2 decimal places.): |
| $3.28 | |
| $3.33 | |
| $4.72 | |
| $3.30 |
|
Using the least squares regression method, the estimate of the fixed component of inspection cost per month is closest to (Do not round intermediate calculations.): |
| $4,604 | |
| $4,789 | |
| $1,494 | |
| $1,522 |