The Following Information Is Available for Maintenance Costs -Refer to the Figure

question 42

Multiple Choice

The following information is available for maintenance costs:
$$\begin{array} { l c c } \text { Month } & \text { Production Volume } & \text { Maintenance Costs } \\\hline\text { January } & 75 & \$ 250 \\\text { February } & 115 & 310 \\\text { March } & 190 & 400 \\\text { April } & 60 & 240 \\\text { May } & 135 & 355\end{array}$$
-Refer to the figure.Using the method of least squares,what would the variable cost per unit of production be (rounded to two decimal places) ?

• A)$1.23
• B)$1.31
• C)$2.70
• D)$3.21

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Definitions:

Withholding Allowances

Amounts exempted from an employee's income tax withholding, directly related to the number of dependents and personal situations.

Current Earnings

The net income that a company has generated over a specific period, excluding any non-operational or extraordinary items.

FICA Tax

A federal payroll tax that funds Social Security and Medicare, evenly split between employers and employees.

Medicare

A federal health insurance program in the United States for people aged 65 and older, and for some younger people with disabilities.