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

question 180

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.What is the cost formula for maintenance cost when using the result of regression?

• A)$985 × machine hours
• B)($4,686 ? $3,956)/(386 ? 310)
• C)$9.82 × machine hours
• D)$985 + ($9.82 × machine hours)

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