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: Call Center Cost Calls Taken April May 7,752 $ 84,042 7,721 $ 83,859 June 7,762 $ 84,105 July 7,761 $ 84,088 August 7,726 $ 83,890 September 7,738 $ 83,946 October 7,783 $ 84,223 November 7,771 $ 84,172 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Answer is complete but not entirely correct. Variable cost 5.90 per call Fixed cost $ 72,681 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: Call Center Cost Calls Taken April May 7,752 $ 84,042 7,721 $ 83,859 June 7,762 $ 84,105 July 7,761 $ 84,088 August 7,726 $ 83,890 September 7,738 $ 83,946 October 7,783 $ 84,223 November 7,771 $ 84,172 Management believes that the cost of the call center is a mixed cost that depends on the number of calls taken. Required: Estimate the variable cost per call and fixed cost per month using the least-squares regression method. (Round the "Variable cost" to 2 decimal places and the "Fixed cost" to the nearest dollar amount.) Answer is complete but not entirely correct. Variable cost 5.90 per call Fixed cost $ 72,681 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

Chapter7: Allocating Costs Of Support Departments And Joint Products

Section: Chapter Questions

Problem 30E: A company uses charging rates to allocate service department costs to the using departments. The...

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