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 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. Sum Average Average cost per hour Maintenance Machine Cost Hours $ 5,050 820 3,850 660 4,450 740 3,670 640 5,200 840 3,810 650 3,880 660 5,320 940 5, 110 830 4,900 810 4,150 690 4,010 680 $53,400 8,960 $ 4,450 $ 747 $ 6.00 Apr. 3,670 May 5,200 June 3,810 July 3,880 Aug. 5,320 Sept. 5, 110 Oct. 4,900 Nov. 4,150 Dec. 4,010 Sum $53,400 Average $ 4,450 Average cost per hour a (intercept) b (coefficient) Standard error of the estimate R-squared t-value for b 640 840 650 660 940 830 810 690 680 8,960 $ 747 $ 6.00 $ 194.33 6.2201 144.247 0.9517 14.030 The coefficient of determination for Armer's regression equation for the maintenance activities is