Wallace Incorporated Wanted to Determine the Relationship Between Its Monthly

question 89

Multiple Choice

Wallace Incorporated wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here) : What is the variable cost per machine hour (rounded to the nearest cent) ?

• A)$67.59
• B)$2,945.95
• C)$0.99
• D)$0.72

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Definitions:

Orange Production

The production process of growing and harvesting oranges, primarily for consumption as fruit or for juice production.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.

Tractor

A type of heavy vehicle used mainly in farming to pull machinery and trailers and for plowing.

Motorcycle

A two-wheeled vehicle powered by an engine, designed for travel on public roads and often used for recreation or transportation.