Using Multiple Regression Results to Construct and Apply a Cost Formula The controller for McGarvey Manufacturing Company feit that the number of purchase orders alone did not explain the monthly purchasing cost. He knew that nonstandard orders (for example, one requiring an overseas supplier) took more time 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. Multiple regression was nin on the above data; the coefficlents shown by the regression program are: Intercept 14,580 (rounded to the nearest dollar) Multiple regression was run on the above data; the coefficients shown by the regression program are: Intercept 14,580 (rounded to the nearest dollar) X variable 16.34 (rounded to the nearest cent) * X variable 216.85 (rounded to the nearest cent) Required: 1. Construct the cost formula for the purchasing activity showing the fixed cost and the variable rate. 1 +(5 x Purchase orders) Nonstandard orders) 2. If McGarvey Manufocturing Company estimates that next month will have 490 total purchase orders and 42 nonstandard orders, what is the total estimated purchasing cost for that month? (Round your answer to the nearest dollar.) 3. What if McGarvey Manufacturing wants to estimate purchasing cost for the coming year and expects 6,000 purchase orders and 600 nonstandard arders? What will estimated tokal purchasing cost be? (Round your answer to the nearest doliar.) What is the total fixed purchasing cost? Why doesn't it equal the fixed cont calculated in Requirement 2 abeve