Refer to the company information in Exercise 14-35. In exercise The method of least squares was used
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In exercise The method of least squares was used to develop a cost equation to predict the cost of receiving. Ninety-six data points from monthly data were used for the regression. The following computer output was received:
Intercept ......... 23,100
Slope .......... 316
The driver used was number of parts inspected.
Required:
1. What is the cost formula for a year?
2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 29,000 parts are inspected.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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