Midgett Co. 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 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 analysis are as follows: Month Maintenance Cost Machine Hours Jan. 5 5,040 620 Feb. 3,648 420 Mar. 4,320 520 Apr. 3,331 390 May 5,221 650 June 3,550 400 July 3,655 430 Aug 5,365 690 Sept. 5,110 640 Oct. 4,866 610 Nov. 3,944 460 Dec 3,790 440 Sum $ 51,840 6,270 Average $4,320.00 522.50 Average cost per hour (551,840/6,270) = 58.27 (rounded to the nearest cent) 0.99821 20.99780 Using the high-low method, total maintenance cost for 600 hours is calculated to be (round to the nearest dollar) $4,777 55,528, $4,755 $5,293 $5,656 Armer Company is accumulating data to use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression 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 analysis follow Month Maintenance Cost Machine Hours Jan $ 4.200 480 Feb. 3,000 320 Mar 3,600 400 Apr. 2,820 300 May 4.350 500 June 2,960 310 July 3,030 320 Aug 4,470 520 Sept 4,260 490 Oct. 4,050 470 Nov. 3,300 350 Dec 3,160 340 Sum $43,200 4.800 Average $3,600 $400 Average cost per hour $9.00 a intercept 5 684.65 b(coefficient) 72884 Standard error of the estimate 34.469 R-squared 0.99724 t value for 60.105 If Armer Company uses the high-low method of analysis, the equation for the relationship between hours of activity and maintenance cost follows: y=570 - 7.5% Oy=570 9.0 x Oy 400 - 9.0 None of these answer choices are correct y 3,600 400