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: Month Maintenance Cost Machine Hours Jan. $ 4,500 600 Feb. 3,300 440 Mar. 3,900 520 Apr. 3,120 420 May 4,650 620 June 3,260 430 July 3,330 440 Aug. 4,770 660 Sept. 4,560 610 Oct. 4,350 590 Nov. 3,600 470 Dec. 3,460 460 Sum $ 46,800 6,260 Average $ 3,900 $ 522 Average cost per hour $ 7.00 a (intercept) $ 220.82 b (coefficient) 7.0527 Standard error of the estimate 52.8466 R-squared 0.9935 t-value for b 39.130 Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at rev: 12_02_2019_QC_CS-192345