Aaron Corp. uses multiple methods to estimate costs. The machine hours and related costs for the last year, as well as the regression analysis results, are as follows:

Month	Maintenance Cost			Machine Hours
Jan.	$	4,750			700
Feb.		3,550			540
Mar.		4,150			620
Apr.		3,370			520
May		4,900			720
June		3,510			530
July		3,580			540
Aug.		5,020			780
Sept.		4,810			710
Oct.		4,600			690
Nov.		3,850			570
Dec.		3,710			560
Sum	$	49,800			7,480
Average	$	4,150		$	623
Average cost per hour				$	7.00
a (intercept)				$	-81.9267
b (coefficient)					6.7892
Standard error of the estimate					83.4170
R-squared					0.9838
t-value for b					24.6685

If Aaron Company uses the high-low method of analysis, what should be the equation to estimate future costs? (Do not round intermediate calculations.)

rev: 11_22_2019_QC_CS-191634

Multiple Choice

• None of these answer choices are correct.

• y = 70 + 7x

• y = 70 + 6.3x

• y = 4,150 + 623x

• y = -82 + 6.8x