Moeller Inc.'s inspection costs are listed below: Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method,the estimates of the variable and fixed components of inspection cost would be closest to:
A)$51.76 per unit plus $2,621 per month
B)$51.99 per unit plus $2,584 per month
C)$67.86 per unit plus $11,053 per month
D)$52.23 per unit plus $2,550 per month

Question

Moeller Inc.'s inspection costs are listed below:  Management believes that inspection cost is a mixed cost that depends on the number of units produced.Using the least-squares regression method,the estimates of the variable and fixed components of inspection cost would be closest to:
A)$51.76 per unit plus $2,621 per month 
B)$51.99 per unit plus $2,584 per month 
C)$67.86 per unit plus $11,053 per month 
D)$52.23 per unit plus $2,550 per month

Quizplus · Accepted Answer

Using Microsoft Excel,the solution is:
 11eaa48f_7c00_89f7_9e4a_2b328bbe89eb_TB2485_00