Delreal Inc

Multiple Choice

Delreal 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) $20.27 per unit plus $5,905 per month
B) $44.44 per unit plus $10,867 per month
C) $20.68 per unit plus $5,807 per month
D) $20.57 per unit plus $5,837 per month