During your examination of the financial statements of Imperial Company, you wish to analyze selected aspects of the company’s operations. Machine-hours and maintenance costs for the first four months of 19X1, which you believe are representative for the year, were as follows:

Required:
Use the least squares method to determine the fixed and variable cost elements.

Transcribed Image Text:

Machine- Total Maintenance Month Hours Costs January 2,800 $ 3,200 February. 3,200 3,600 March 4,400 4.400 April 3,600 3,852 14,000 $15,052