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An organizations accountant is estimating next periods total costs. He performed regression analyses based on machine hours. The results were: Total cost = SAR120, 000

An organizations accountant is estimating next periods total costs. He performed regression analyses based on machine hours. The results were: Total cost = SAR120, 000 + SAR4 x machine hours For the next period the accountant anticipates using 30,000 machine hours. Based upon this information, what is the best estimate for the cost for the next period?

1. SAR240, 000 2. SAR300, 000 3. SAR400, 000 4. SAR320, 000

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