Burmer CoHas Accumulated Data to Use in Preparing Its Annual Profit

question 31

Multiple Choice

Burmer 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 ($51,830 / 6,260) = $8.28 (rounded to the nearest cent) r = .99821;r²= .99642.
Using the high-low method,total maintenance cost for 600 hours is calculated to be (rounded) :

• A)$5,293.
• B)$4,814.
• C)$5,528.
• D)$4,913.
• E)$5,106.

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Definitions:

Retail Bank

A bank that provides financial services to individual consumers rather than businesses, offering deposits, loans, and other services.

Commercial Bank

A commercial bank is a financial institution that offers various services, such as accepting deposits, providing business loans, and offering basic investment products to individuals and businesses.

Corporate Bank

A financial institution that provides services such as loans, currency exchange, and large-scale investment opportunities to businesses and corporations.

Commercial Letter

A commercial letter is a document used in international trade that provides specific instructions or information regarding the shipment of goods.