QUESTION 2 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. $5,040 620 Feb. 3,648 420 Mar. 520 4,320 3,331 Apr. 390 650 May June 5,221 3,550 400 July 3,655 5,365 430 690 Aug 5,119 640 Sept. Oct. Nov. 610 4,866 3,944 460 Dec. 440 Sum 3.790 $51,840 $4,320.00 6,270 522.50 Average Average cost per hour ($51,840/6,270) - $8.27 (rounded to the nearest cent) r=0.99821 12 -0.99780 The percent of the total variance that can be explained by the regression equation is: 99.821%. 69.670% Click Save and Submit to save and submit. Click Save All Answers to save all answers