Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex...
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Accounting
Serenity Living manufactures gas fireplaces for home use. Each unit produced goes through a complex quality control process. The company has observed quality control costs as follows over the past 16 weeks:
Week Units Produced Total Quality Control Costs
1 27 $ 570
2 18 $ 460
3 33 $ 620
4 15 $ 420
5 21 $ 540
6 30 $ 600
7 23 $ 517
8 24 $ 528
9 20 $ 457
10 22 $ 485
11 25 $ 539
12 32 $ 637
13 29 $ 588
14 17 $ 404
15 19 $ 444
16 34 $ 622
For planning purposes, the companys management wants to know the amount of variable quality control costs per unit and the total fixed quality control costs per week.
Required:
1. Using the least-squares regression method, estimate the variable and fixed elements of the quality control cost. (Round variable cost to 2 decimal places.)
2. If the company produces 23 gas fireplaces next week, what are the expected total quality control costs? (Round intermediate and final value to 2 decimal places.)
Please Help me answer this. Thank You
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