The Armer Company Is Accumulating Data to Be Used in Preparing

question 14

Multiple Choice

The Armer 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) Based upon the data derived from the regression analysis,420 maintenance hours in a month would mean the maintenance costs would be budgeted at: (rounded to the nearest whole dollar)

• A)$3,797.
• B)$3,780.
• C)$3,746.
• D)$3,600.

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Definitions:

Sediment

Particles or fragments of rock, minerals, or organic matter that have been transported and deposited by wind, water, or ice.

Stream

A body of water flowing in a channel or bed, usually freshwater and moving towards a river, lake, sea, or another stream.

Sediment Size

A classification measure of solid particles in sediments or sedimentary rocks, based on their diameter, ranging from clay to boulders.

Mountain Streams

Fast-flowing bodies of water that originate in mountainous regions, often contributing to the erosion and shaping of the landscape.