Question: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. $X+(X Purchase orders )+(X Nonstandard orders ) 3.

1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. $X+(X Purchase orders )+(X Nonstandard orders ) 3. What if McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,000 purchase orders and 600 nonstandard orders? What will estimated total purchasing cost be? (Round your answer to the nearest dollar.) Using Multiple Regression Results to Construct and Apply a Cost Formula and effort. He collected data on the number of nonstandard orders for the past 12 months and added that information to the data on purchasing cost and total number of purchase orders. \begin{tabular}{lccc} Month & PurchasingCost & NumberofPurchaseOrders & NumberofNonstandardOrders \\ \hline January & $19,250 & 370 & 61 \\ February & 18,050 & 330 & 40 \\ March & 18,200 & 320 & 35 \\ April & 18,050 & 410 & 14 \\ May & 19,345 & 400 & 73 \\ June & 19,500 & 450 & 55 \\ July & 19,670 & 460 & 30 \\ August & 20,940 & 560 & 80 \\ September & 19,430 & 440 & 51 \\ October & 20,020 & 600 & 75 \\ November & 18,800 & 470 & 12 \\ December & 19,340 & 480 & 27 \end{tabular} Multiple regression was run on the above data; the coefficients shown by the regression program are: Intercept X variable 1 X variable 2 14,610 (rounded to the nearest dollar) 6.31 (rounded to the nearest cent) 16.82 (rounded to the nearest cent)

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