(Appendix 2A)Laborn Inc

Multiple Choice

(Appendix 2A) Laborn 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) $43.04 per unit plus $10, 648 per month
B) $34.63 per unit plus $2, 089 per month
C) $34.78 per unit plus $2, 044 per month
D) $36.00 per unit plus $1, 714 per month