August Hammer 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: Maintenance Month Cost Machine Hours $ 4, 600 3,400 4,000 3,220 4,750 January 640 February 480 March 560 April 460 May 660 June 3,360 470 July 3,430 480 4,870 4,660 August 700 September 650 October 4,450 630 3,700 3,560 November 510 December 500 $ 48,000 $ 4,000 Sum 6,740 $ 562 $ 7.00 $ 38.71 Average Average cost per hour a (intercept) b (coefficient) 7.0527 Standard error of the estimate 52.8466 R-squared 0.99351 t-value forb 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 Multiple Cholce $3.054. $3,524. $3.068. $3,001.