Question: Coefficients shown by a regression program are: Intercept 7600 X Variable 1 5.10 Required: A. Using the results of regression calculate the fixed cost of

Coefficients shown by a regression program are:

Intercept 7600

X Variable 1 5.10

Required:

A. Using the results of regression calculate the fixed cost of maintenance and the variable rate per machine hour.

Fixed cost $_____

Variable rate $_____

per machine hour

B. Using the results of regression, construct the cost formula for the total maintenance cost.

Total maintenance cost

=

Fixed cost

+

Variable cost

=

_____

+

___________

C. Calculate the budgeted cost for maintenance assuming that 610 hours are worked next month.

$ __________

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