Midgett Co

question 84

Multiple Choice

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:Average cost per hour ($51,840/6,270) = $8.27 (rounded to the nearest cent)
r = 0.99743
r² = 0.99487
Using the high-low method, total monthly fixed cost is calculated to be (round to nearest dollar) :

• A) $757.
• B) $687.
• C) $756.
• D) $733.
• E) $717.

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Definitions:

Hawthorne Studies

A series of studies conducted to examine how various aspects of the work environment, such as lighting and work hours, affect worker productivity, emphasizing the social and psychological factors.

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DSM-5

The Diagnostic and Statistical Manual of Mental Disorders, Fifth Edition, a taxonomy published by the American Psychiatric Association used for diagnosing and classifying mental disorders.

Substance Use Disorder

A mental disorder that affects a person's brain and behavior, leading to an inability to control the use of legal or illegal substances or medications.