Method of Least Squares, Developing and Using the Cost Formula The method of least squares was used to develop a cost equation t
o 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 201,200
Slope 365
The cost driver used was number of parts inspected.
1. What is the cost formula?
Total cost receiving of =$ + ($x)
2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month.
3. Using the cost formula, predict the cost of receiving for a month in which 8,000 parts are inspected.
Total cost of receiving = $
Intercept 201,200
Slope 365
The cost driver used was number of parts inspected.
1. What is the cost formula?
Total cost receiving of =$ + ($x)
2. Using the cost formula from Requirement 1, identify each of the following: independent variable, dependent variable, Variable rate per professional hour, and fixed cost per month.
3. Using the cost formula, predict the cost of receiving for a month in which 8,000 parts are inspected.
Total cost of receiving = $
1 answer:
You might be interested in
Answer:
$12 billion.
Explanation:
Given: Value added during 2011= $78 billion.
Total sales= $90 billion.
Intermediate goods are the goods used to produce final product and it is not included in the calculation of GDP, however, it is included in the value of final goods.
Now, finding the value of intermediate goods purchased.
Intermediate goods=
⇒ Intermediate goods=
∴ Intermediate goods=
Hence, value of intermediate goods purchased is $12 billion.