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.Data regarding the machine hours and maintenance costs for the last year and the results of the regression analysis are as follows: 
A staff assistant has run regression analyses on the data and obtained the following output using Excel: 
The Lower 95% and Upper 95% shown in the output suggests that:
Definitions:
Transfer Price
The price at which goods and services are sold between divisions within the same company.
Excess Capacity
The unused production capability of a company, indicating that the company can produce more than is currently being demanded.
Expense Allocation
The process of identifying, aggregating, and assigning costs to cost objects like departments, products, or projects.
Operating Departments
Operating departments are the functional areas within an organization directly involved in producing the company's main goods or services, such as production or sales departments.
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