Midgett Co

question 25

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 = 0.99821
r² = 0.99780
The percent of the total variance that can be explained by the regression equation is:

• A) 99.821%.
• B) 69.670%.
• C) 81.049%
• D) 99.780%.
• E) 99.642%.

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Definitions:

Eugene Debs

An American socialist, political activist, trade unionist, and one of the founding members of the Industrial Workers of the World, who ran for U.S. President five times as the candidate of the Socialist Party.

Socialist Cause

A movement or effort dedicated to promoting socialism, which advocates for public or collective ownership and administration of the means of production and distribution of goods.

Mass Consumption

The widespread purchase and use of goods and services by a large portion of the population, often associated with developed economies and the rise of consumer culture.

Department Stores

Large retail establishments that offer a wide variety of goods in different departments under one roof, representing an essential aspect of consumer culture.