Coefficients shown by a regression program are:

Intercept 7,600X

Variable 15.10

The cost driver used is machine hours.

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=$+($per machine hour Number of machine hours)

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

$