Cornerstones of Managerial Accounting 4th Edition by Maryanne Mowen, Don Hansen, Dan Heitger

Exercise 43

Method of Least Squares, Budgeted Time Period Is Different from Time Period Used to Generate Results
Refer to the company information in Exercise 3-35.
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 29,000 parts are inspected.