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Coefficients shown by a regression program are: Intercept 7,600 X Variable 1 5.10 The cost driver used is machine hours. Required: A. Using the results
Coefficients shown by a regression program are: Intercept 7,600 X Variable 1 5.10 The cost driver used is machine hours. Required: A. Using the results of regression, calculate the fixed cost of maintenance and the variable rate per machine hour, Fixed cost Variable rate per machine hour B. Using the results of regression, construct the cost formula for the total maintenance cost. Total maintenance cost Fixed cost + Variable cost per machine hour Number of machine hours) + C. Calculate the budgeted cost for maintenance assuming that 610 hours are worked next month
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