Figure 3-7

question 129

Multiple Choice

Figure 3-7.Margola Company produces hand-held calculators. The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months were collected. Coefficients shown by a regression program are:

-Refer to Figure 3-7. Using the results of regression, the cost formula for maintenance cost was

• A) $1,150 * machine hours
• B) ($4,686 - $3,956)/(386 - 310)
• C) $9.06 * machine hours
• D) $1,150 + ($9.06 * machine hours)

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Definitions:

Broker

A person or firm that acts as an intermediary between a buyer and seller, usually charging a commission.

Multiple Insurance Clause

A provision in insurance policies that outlines how claims will be handled when more than one policy covers the same loss.

Fidelity Insurance

A form of insurance coverage that protects businesses from losses due to fraudulent acts by employees, such as embezzlement or theft.

Proportionate Share

An individual's or group's fair or equitable portion of a whole, often related to shares in a company or distribution of assets.