The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received:

Intercept (Fixed cost): $147,400

Slope (Variable rate): $210

Cost driver used: Number of parts inspected

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Required:

1. Cost Formula
   Write the total cost formula for receiving:

Total cost of receiving=$_____+($_____×_____)

2. Identify the following from the cost formula:
   

   • Independent variable = __________

   • Dependent variable = __________
   • Variable rate per professional hour (per part inspected) = _________
   • Fixed cost per month = __________
3. Prediction:
   Using the cost formula, predict the total cost of receiving for a month in which 6,800 parts are inspected.
   Total cost of receiving=$_____