Refer to the information for Farnsworth Company above. However, assume that Tracy has used the method of least squares on the receiving data and has gotten the following results:

Intercept ......... 3,212
Slope ......... 15.15

Required:
1. Using the results from the method of least squares, prepare a cost formula for the receiving activity.
2. Using the formula from Requirement 1, what is the predicted cost of receiving for a month in which 1,450 receiving orders are processed?
3. Prepare a cost formula for the receiving activity for a quarter. Based on this formula, what is the predicted cost of receiving for a quarter in which 4,650 receiving orders are anticipated?
Prepare a cost formula for the receiving activity for a year. Based on this formula, what is the predicted cost of receiving for a year in which 18,000 receiving orders are anticipated?

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Month Roceiving Orders Recaiving Cost 1,000 700 1,500 1,200 1,300 1,100 1,600 1,400 1,700 900 $18,000 15,000 28,000 17,000 25,000 21,000 29,000 24,000 27,000 16,000 10