The Saskatoon Company Manufactures Motorcycles -Refer to the Figure

question 87

Multiple Choice

The Saskatoon Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past five months were collected. $\begin{array}{lrr}& \text { Utility } & \text { Machine } \\\text { Month } &\text { cost }&\text { hours }\\\text { March } & \$ 30,255 & 2,200 \\\text { April } & 32,750 & 2,525 \\\text { May } & 34,712 & 2,710 \\\text { June } & 31,850 & 2,410 \\\text { July } & 30,720 & 2,290\end{array}$
-Refer to the Figure.When using a linear regression program,what is the yearly utility cost equation (with all variables to the nearest penny) ?

• A)total utility cost = $127,569.60 + ($8.83 × machine hours)
• B)total utility cost = $10,630.80 + ($8.83 × machine hours)
• C)total utility cost = $8.83 + ($10,630.80 × machine hours)
• D)total utility cost = $10,630.80 ? ($8.83 × machine hours)

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