In: Accounting
Measuring Cost Behavior
Month Setup Hours (X) Setup Costs (Y)
January 100 $1,000
February 200 1,250
March 300 2,250
April 400 2,500
May 500 3,750
What is the variable cost per unit using least-squares regression?
A. $4.50
B. $6.75
C. $7.25
D. $8.95
What is the fixed cost using least-squares regression?
A. $100
B. $105
C. $125
D. $135
What is the total cost at a level of 800 setup hours using least-squares regression?
A. $4,235
B. $4,765
C. $4,985
D. $5,525