The Method of Least Squares Was Used to Develop a Cost

question 60

Multiple Choice

The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance for the Regina Company. The following computer output was received:
The driver used was the number of machine hours.
$\begin{array}{lr}\text { Intercept } & 32,000 \\\text { Slope } & 25\end{array}$
-Refer to the Figure.What is the independent variable of the cost formula for equipment maintenance?

• A)number of machine hours
• B)the variable rate
• C)the fixed cost
• D)the total cost

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