What is the cost formula for a year

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Question - Method of Least Squares, Budgeted Time Period Is Different from Time Period Used to Generate Results - The method of least squares was used to develop a cost equation to predict the cost of receiving purchased parts at a video game manufacturer. Ninety-six data points from monthly data were used for the regression. The following computer output was received:

Intercept 158,200

Slope 280

The cost driver used was number of parts inspected.

Required -

1. What is the cost formula for a year?

2. Using the cost formula from Requirement 1, predict the cost of parts inspection for a year in which 14,700 parts are inspected.

Reference no: EM133056120

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