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

Midget Co. has accumulated data to use in preparing its annual profe plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff suggested that linear regression be employed to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression anasis are as follows: Maintenance Machine Month Cost Hours Jan. S 5,070 510 Feb. 3,551 320 Mar. 4,250 610 Apr. 3,302 310 May 5,211 620 June 3,360 480 July 3,753 510 Aug 5,351 580 Sept. 5,110 610 Oct 4,855 670 NOV 3,959 560 Dec 3.960 340 Sun $ 51,832 6,320 Average $4, 319.33 526.67 Average cost per hour [51832/6,320) - $8.20 -0.80479 2.064769 Using me high low method, total maintenance cost for 500 hours is calculated to be (Do not round interlediate calculations. Round your answer to the nearest dollar) Multiple Choice $4,892 $4,376. $5,127 $4,354. $5.255
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