Toronto Company Makes Cell Phones $\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}$

question 33

Multiple Choice

Toronto Company makes cell phones. The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory. Data for the past four months were collected.Coefficients shown by a regression program are:
$\begin{array}{lrr}& \text { Electricity } & \text { Machine } \\\text { Month } & \text { cost } & \text { hours }\\\text { May } & \$ 7,560 & 570 \\\text { June } & 8,220 & 625 \\\text { July } & 7,480 & 546 \\\text { August } & 7,186 & 518\end{array}$ $\begin{array}{ll}\text { Intercept } & 2,225 \\\text { X Variable 1 } & 9.75\end{array}$
-Refer to the Figure.Assume that 640 machine hours are budgeted.What would be the total budgeted cost for electricity next month?

• A)$2,225
• B)$4,015
• C)$6,240
• D)$8,465

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