(Appendix 5A) Lacourse Inc.'s inspection costs are listed below:
Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:
A) $22.80
B) $8.82
C) $8.27
D) $8.78

Question

(Appendix 5A) Lacourse Inc.'s inspection costs are listed below:
  Management believes that inspection cost is a mixed cost that depends on units produced.
-Using the least-squares regression method,the estimate of the variable component of inspection cost per unit produced is closest to:
A) $22.80 
B) $8.82 
C) $8.27 
D) $8.78

Quizplus · Accepted Answer

Using Microsoft Excel functions, the solution is:
Variable cost per unit produced = Slope = $8.82