Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: April May June July August September October November Calls Taken Call Center Cost 6,801 6,770 6,811 6,807 6,777 6,787 6,829 6,813 Variable cost Fixed cost $73,732 $73,530 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. $ 73,801 $ 73,752 $ 73,586 $ 73,629 $73,900 $ 73,795 Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. Note: Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. $ 6.23 per call 31,327 per month

Grawburg Incorporated maintains a call center to take orders, answer questions, and handle complaints. The costs of the call center for a number of recent months are listed below: April May June July August September October November Calls Taken Call Center Cost 6,801 6,770 6,811 6,807 6,777 6,787 6,829 6,813 Variable cost Fixed cost $73,732 $73,530 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. $ 73,801 $ 73,752 $ 73,586 $ 73,629 $73,900 $ 73,795 Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. Note: Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount. $ 6.23 per call 31,327 per month

Cornerstones of Cost Management (Cornerstones Series)

4th Edition

ISBN:9781305970663

Author:Don R. Hansen, Maryanne M. Mowen

Publisher:Don R. Hansen, Maryanne M. Mowen

Chapter6: Process Costing

Section: Chapter Questions

Problem 2CE: Lising Therapy has a physical therapist who performs electro-mechanical treatments for its patients....

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