mheducation.com 1 match Exam 2 Help Save & Exit 21 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: Machine Hours 480 X 00 14:10 520 490 Maintenance Month Cost Jan. $ 4,200 Feb. 3,000 Mar. 3,600 Apr. 2,820 May 4,350 June 2,960 July 3,030 Aug. 4,470 Sept. 4,260 Oct. 4,050 Nov. 3,300 Dec. 3. 160 Sum $43,200 Average $ 3,600 Average cost per hour a (intercept) b (coefficient) Standard error of the estimate R-squared t-value for b 470 350 340 4,800 400 $ 9.00 $ 684.65 7.2884 34.469 0.99724 60.105 At 400 hours of activity, Armer management can be approximately two-thirds confident that the maintenance costs will be in the range of MHE Reade 1 tch 2 Help Save & Exit At 400 hours of activity, Armer management can be approximately two-thirds confident that the maintenance costs will be in the range of 21 Multiple Choice Cossa $3.58618 53,613 93. $3,565. 54 to 53,634,48. None of these answer choices are correct $1500 5o 1o 83649.53. 36137 to $3.648.51. 21 of 50 II Next > mheducation.com 1 match Exam 2 Help Save & Exit 21 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: Machine Hours 480 X 00 14:10 520 490 Maintenance Month Cost Jan. $ 4,200 Feb. 3,000 Mar. 3,600 Apr. 2,820 May 4,350 June 2,960 July 3,030 Aug. 4,470 Sept. 4,260 Oct. 4,050 Nov. 3,300 Dec. 3. 160 Sum $43,200 Average $ 3,600 Average cost per hour a (intercept) b (coefficient) Standard error of the estimate R-squared t-value for b 470 350 340 4,800 400 $ 9.00 $ 684.65 7.2884 34.469 0.99724 60.105 At 400 hours of activity, Armer management can be approximately two-thirds confident that the maintenance costs will be in the range of MHE Reade 1 tch 2 Help Save & Exit At 400 hours of activity, Armer management can be approximately two-thirds confident that the maintenance costs will be in the range of 21 Multiple Choice Cossa $3.58618 53,613 93. $3,565. 54 to 53,634,48. None of these answer choices are correct $1500 5o 1o 83649.53. 36137 to $3.648.51. 21 of 50 II Next >
