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Margola Company produces hand-held calculators. The company controller wanted to calculate the foxed and variable costs associated with the maintenance cost incurred by the factory.

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Margola Company produces hand-held calculators. The company controller wanted to calculate the foxed and variable costs associated with the maintenance cost incurred by the factory. Data for the past four months were collected Month June Maintenance cost $4,180 3,956 4,686 4,240 Machine hours 328 310 July August September Coefficients shown by a regression program are: Intercept X Variable 1 1,150 Using the results of regression, the cost formula for maintenance cost was: (54,686 - $3,956)/(386-310). b. $1,150 x Machine hours. c. $1,150 + (19.06 x Machine hours). d. $9.06 Machine hours

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