The McGraw Company Is Accumulating Data to Be Used in Preparing

question 29

Multiple Choice

The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year.The cost behavior pattern of the maintenance costs must be determined.The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs.Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted)

What is the fixed cost per month using the high-low method to estimate the cost equation?

• A) $570.
• B) $600.
• C) $1,140.
• D) $2,250.

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Definitions:

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A document issued by a credit card company each billing cycle that details all transactions, fees, and payments made.

Change Of Address

The act of updating one's living or business location information across various personal and professional contacts and services.

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An individual who unlawfully takes another person's property with the intent to permanently deprive them of it.

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Individuals who might commit the act of unlawfully entering a property with the intent to commit a theft or other crimes.