Midgett Co

question 35

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
Using the high-low method, total maintenance cost for 600 hours is calculated to be (round to the nearest dollar) :

• A) $5,293.
• B) $4,777.
• C) $5,528.
• D) $4,755.
• E) $5,656.

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Definitions:

Cotton Mather

A New England Puritan minister, prolific author, and pamphleteer, best known for his role in the Salem witch trials in the late 17th century.

European Goods

Products manufactured in Europe that were historically traded or brought to other regions, often influencing global trade patterns and local economies.

Racism

Prejudice, discrimination, or antagonism directed against someone of a different race based on the belief that one's own race is superior.

Colonies

Territories under the political and economic control of another country, often established during periods of exploration and exploitation.