Bestroute, a large hotel chain, has been using activity$-$based costing to determine the cost of a night's stay at their hotels. $($Click the icon to view additional information.$)$ Devlins gathers information for weekly inspection costs, rooms inspected, and inspection labor$-$hours as follows: $($Click the icon to view the information gathered.$)$ Read the requirements. $\backslash (\backslash$underline$\{\backslash$underline$\{\backslash$Phi$\}\}\backslash )($After you hit continue, the screen may take you below the beginning of the next step. If so$,$ scroll back up to the top of the step.$)$ line tool buttons displayed below to draw the graph.$)$ Inonartion Prote and Inomartion More info

One of the activities, "Inspection," occurs to ensure the room is in good condition. Bestroute has been using "number of rooms inspected" as the cost driver for inspection costs. A significant component of inspection costs is the cost of replacing cutlery, crockery, and furnishings as a result of an inspection. Susan Devlins, the chief inspector, is wondering whether inspection labor$-$hours might be a better cost driver for inspection costs.

$111$Rooms InspectedInspection Labor$-$HoursInspection Costs$\backslash$$

$1,800$Devlins runs regressions on each of the possible cost drivers and estimates these cost functions:Inspection Costs $\backslash (=\backslash$$ $485\mathrm{.}24+(\backslash$$ $6\mathrm{.}20\backslash$times $\backslash )$ Number of rooms inspected $\backslash ()\backslash )$ Inspection Costs $\backslash (=\backslash$$ $783\mathrm{.}43+(\backslash$$ $11\mathrm{.}99\backslash$times $\backslash )$ Inspection labor$-$hours $\backslash ()\backslash )$