Figure 3-7

question 23

Multiple Choice

Figure 3-7. Margola Company produces hand-held calculators.The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory.Data for the past four months were collected.
Coefficients shown by a regression program are:
Refer to Figure 3-7.Using the results of regression,calculate the fixed cost of maintenance.

• A)$1,150.00
• B)$978.37
• C)$9.06
• D)None of these are correct

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Definitions:

Machinery Setup

The process of assembling, configuring, and preparing machinery for operational use in manufacturing or industrial settings.

Cost Labels

Designations or categories used to identify, track, and analyze costs, helping in understanding their nature and how they should be managed.

Direct Materials

The raw materials that are directly traceable to the production of a specific product.

Indirect Labor

Costs associated with employees who assist in the production process but do not directly work on products, such as supervisors and maintenance staff.