Midgett Co. has accumulated data to use in preparing its annual profit plan for the...
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Accounting
Midgett Co. has accumulated data to use in preparing its annual profit plan for the upcoming year The cost behavior pattern of the maintenance costs must be determined. The accounting staff suggested that linear regression be employed to derive an equation for maintenance hours and costs. Data regarding th the last year and the results of the regression analysis are as follows: e maintenance hours and costs for Maintenance Machine Month Cost Hours $ 5,050 3,656 4,450 3,304 5,234 3,510 3,737 5,374 5,105 4,885 3,959 3,990 $ 52,254 Average $4.354.50 560 380 460 450 660 430 510 620 680 660 390 420 6,220 518.33 Jan. Feb. Mar. Apr. May June July Aug. Sept. oct. Nov. Dec. Sum Average cost per hour ($52,254/6,220) $8.40 r 0.84671 F2- 0.71692 Using the high-low method, total monthly fixed cost is calculated to be: (Do not round intermediate calculations Round your answer to the nearest dollar.) Multiple Choice $751 $752 S751. $752 $682. $712. $728
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