George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 2 3 4 5 Units 13 11 16 15 18 18 91 Total Etching Cost $ 24 21 31 25 31 32 $164 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 5A-5 Part 2 (Algo) 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bx.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Required information.
Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11]
George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the
company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs
as follows over the last six weeks:
Week
1
22555T
3
Y =
4
6
Units
13
11
16
15
18
18
91
For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost
per week.
Exercise 5A-5 Part 2 (Algo)
Total Etching
Cost
$ 24
21
31
25
31
32
$ 164
2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week.
2-b. Express these estimates in the form Y = a + bx.
Req 2A
Complete this question by entering your answers in the tabs below.
Req 2B
Express these estimates in the form Y = a +bX. (Round your answers to 2 decimal places.)
X
< Req 2A
Req 2B >
Transcribed Image Text:Required information. Exercise 5A-5 (Algo) Least-Squares Regression [LO5-11] George Caloz & Frères, located in Grenchen, Switzerland, makes luxury custom watches in small lots. One of the company's products, a platinum diving watch, goes through an etching process. The company has recorded etching costs as follows over the last six weeks: Week 1 22555T 3 Y = 4 6 Units 13 11 16 15 18 18 91 For planning purposes, management would like to know the variable etching cost per unit and the total fixed etching cost per week. Exercise 5A-5 Part 2 (Algo) Total Etching Cost $ 24 21 31 25 31 32 $ 164 2-a. Using the least-squares regression method, estimate the variable etching cost per unit and the total fixed etching cost per week. 2-b. Express these estimates in the form Y = a + bx. Req 2A Complete this question by entering your answers in the tabs below. Req 2B Express these estimates in the form Y = a +bX. (Round your answers to 2 decimal places.) X < Req 2A Req 2B >
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