Midgett Co

question 28

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, unit variable cost is calculated to be (round to the nearest cent) :

• A) $6.83.
• B) $8.67.
• C) $6.78.
• D) $7.88.
• E) $6.48.

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Definitions:

Implicit Attitude

An attitude that exists outside of conscious awareness, influencing feelings and behavior unconsciously.

Explicit Attitude

Attitudes that people consciously endorse and can easily report, reflecting deliberate beliefs and feelings.

Automatic Association

The unconscious linking of two concepts or objects together in one's mind, which can influence attitudes and behavior without conscious awareness.

Implicit Attitudes

Unconscious beliefs or feelings toward objects, people, or situations that influence our responses and behavior.