10 Armer Company is accumulating data to use 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 the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow, nts 010616 Maintenance Machine Month Cost Hours Jan. $ 4,600 640 Feb. 3,400 480 Mar. 4,000 560 Apr. 3,220 460 May 4,750 660 June 3,360 470 July 3,430 480 Aug. 4,870 700 Sept. 4,660 650 Oct. 4.450 630 Nov. 3,700 510 Dec. 3,560 500 Sum $48,000 6,740 Average $ 4,000 $ 562 Average cost per hour $ 7.00 a (intercept) $38.7146 b (coefficient) 7.0527 Standard error of the estimate 52.8466 R-squared 0.9935 t-value for b 95.350 The percent of the total variance that can be explained by the regression equation is 10 Armer Company is accumulating data to use 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 the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow, nts 010616 Maintenance Machine Month Cost Hours Jan. $ 4,600 640 Feb. 3,400 480 Mar. 4,000 560 Apr. 3,220 460 May 4,750 660 June 3,360 470 July 3,430 480 Aug. 4,870 700 Sept. 4,660 650 Oct. 4.450 630 Nov. 3,700 510 Dec. 3,560 500 Sum $48,000 6,740 Average $ 4,000 $ 562 Average cost per hour $ 7.00 a (intercept) $38.7146 b (coefficient) 7.0527 Standard error of the estimate 52.8466 R-squared 0.9935 t-value for b 95.350 The percent of the total variance that can be explained by the regression equation is