Burmer CoHas Accumulated Data to Use in Preparing Its Annual Profit

question 42

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;r 2= .99642.
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:

Tropical Rain Forest

Highly productive and species-rich biome in which year-round rains and warmth support continuous growth of evergreen broadleaf trees.

Nutrient Poor Soil

Soil that lacks essential nutrients required for plant growth.

Herbivores

Animals that primarily consume plant material.

CAM Plants

Plants that use Crassulacean Acid Metabolism, a photosynthetic adaptation to arid conditions, allowing them to minimize water loss.