Laborn Inc

Multiple Choice

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