Prince Edward Company Produces Hand-Held Calculators $$\begin{array} { l l } \text { Intercept } & 985 \\\text { X Variable 1 } & 9.82\end{array}$$

question 67

Multiple Choice

Prince Edward 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 as follows:
$\begin{array}{lrr}& \text { Maintenance } & \text { Machine } \\\text { Month } & \text { cost } & \text { hours }\\\text { March } & \$ 4,180 & 328 \\\text { April } & 3,956 & 310 \\\text { May } & 4,686 & 386 \\\text { June } & 4,240 & 352\end{array}$ $$\begin{array} { l l } \text { Intercept } & 985 \\\text { X Variable 1 } & 9.82\end{array}$$
-Refer to the Figure.Assume that 400 machine hours are budgeted.What would be the budgeted cost for maintenance next month?

• A)$985
• B)$2,943
• C)$3,928
• D)$4,913

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