Question: Hook Company has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs

Hook Company has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows:

Month	Maintenance Cost	Machine Hours
January	$ 5,040	620
February	3,600	420
March	4,320	520
April	3,380	390
May	5,220	650
June	3,550	400
July	3,640	430
August	5,360	680
September	5,110	640
October	4,860	610
November	3,960	460
December	3,790	440
Sum	$ 51,830	6,260
Average	$ 4,319	522

A staff assistant has run regression analyses on the data and obtained the following output using Excel:

REGRESSION ANALYSIS

Y(Dependent) Variable: Maintenance Cost

X (Independent) Variable: Maintenance Hours

Regression Statistics
Multiple R	0.998210294
R Square	0.996423791
Adjusted R Square	0.99606617
Standard Error	47.0629563
Observations	12

	df	SS	MS	F	Significance F
ANOVA
Regression	1	6171342.448	6171342	2786.257	1.44166E-13
Residual	10	22149.21856	2214.922
Total	11	6193491.667

	Coefficients	Standard Error	t Static	P-value	Lower 95%	Upper 95%
Intercept	783.7782188	68.34114772	11.46861	4.47E-07	631.504653	936.051785
Hours	6.777102456	0.12839066	52.78501	1.44E-13	6.491030239	7.06317467

Using regression analysis, what is the estimated maintenance expense for a month that the firm expects to operate 600 machine hours (round to nearest whole dollar

Multiple Choice

$5,120.
$88.
$6,934.
$4,050.
$4,850.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Problem: Below is a "footprint" of a structure with various measurements indicated by letters only. Using the scales on the following pages, give the length of the line corresponding with the letter...

Hock Company has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance. costs must be determined. Data regarding the machine...

Pepper Company has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff...

Multiple Choice 48.248%. 59.627% 78.358%. 78.399%. 78.220%. Pepper Company has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the...

3.9 Write a Java program that performs a reflection about the line y = 2x. Draw an original rectangle of size 100 by 50 at (0, 100). Apply the reflection to the rectangle and draw the transformed...

You are auditing the financial statements of Lam Company Limited ("Lam") for the year ended 30 September 2021. The following is an exchange between Miss Lee, the financial controller of Lam, and your...

Use the Intermediate Value Theorem to show that the polynomial f ( x ) = 2 x ^ 4 - 1 0 x ^ 2 + 2 has a real zero between - 2 and 0 .

Educational Equality for All Students Researchers over time have documented a number of factors that have slowed the integration of multicultural curriculum in schools. However, the...

Describe briefly about the followings 1. SOCIAL RESPONSILITY 2. COMMITMENT 3. REFLECTIVE PRACTICE 4. INTEGRITY 5. PROFESSIONALISM

Environmental Ethics Position Paragraph Your task is to write a paragraph that analyzes one of the following environmental ethical issues. You choose which issue to write about. You must argue your...

Using the comfort theory of nursing,read several articles and reviews about the theory. For this formal paper, you will both summarize the theory and describe the application of the theory. Key...

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

How would each step in the interview process reveal different relevant information about the applicant? (LO 2, 4)

What characteristics that are relevant to the program would be evaluated in the 15-second video? The group interview? The individual interview? What additional questions would you ask? (LO 2)

Research: What mistakes were made in the hiring process by Greg and Kara? Research common hiring mistakes and how to avoid or fix them. (LO 1, 4, 5, 6, 7)