Question: 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

 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

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 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 Maintenance Machine Month Cost Hours $ 5,040 560 410 620 330 670 300 350 760 600 560 470 420 6,050 Jan. Feb. Mar. Apr. May 3,666 4,430 3,345 5,210 3,520 3,574 5,382 5,124 4,849 3,942 3,970 June July Aug. Sept. oct. Nov. Dec Sum S 52,052 Average $4,337.67 504.17 Average cost per hour ($52,052/6,050) $8.60 7 0.93654 2 0.87711 Using the high-low method, total maintenance cost for 400 hours is calculated to be: (Do not round intermediate calculations. Round your answer to the nearest dollar.) Multiple Choice 7 $4,689. $4,326 $3,810. $3.788 $3,788 $4,561 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 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 Maintenance Machine Month Cost Hours $ 5,040 560 410 620 330 670 300 350 760 600 560 470 420 6,050 Jan. Feb. Mar. Apr. May 3,666 4,430 3,345 5,210 3,520 3,574 5,382 5,124 4,849 3,942 3,970 June July Aug. Sept. oct. Nov. Dec Sum S 52,052 Average $4,337.67 504.17 Average cost per hour ($52,052/6,050) $8.60 7 0.93654 2 0.87711 Using the high-low method, total maintenance cost for 400 hours is calculated to be: (Do not round intermediate calculations. Round your answer to the nearest dollar.) Multiple Choice 7 $4,689. $4,326 $3,810. $3.788 $3,788 $4,561

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