Midgett Co. has accumulated data to use in preparing its annual profit plan for the upcoming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff suggested that linear regression be employed 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 are as follows: Maintenance Machine Month Cost Hours Jan. $ 5,010 550 Feb. 3,654 390 Mar. 4,400 520 Apr. 3,324 470 May 5,230 590 June 3,420 440 July 3,628 378 Aug. 5,380 610 Sept. 5,118 570 Oct. 4,884 690 Nov. 3,928 450 Dec. 3,840 430 Sum $ 51,816 6,080 Average $4,318.00 506.67 Aug. 5,380 Sept. 5,118 Oct. 4,884 Nov. 3,928 Dec. 3,840 Sum $ 51,816 Average $4,318.00 610 570 690 450 430 6,080 506.67 Average cost per hour ($51,816/6,080) = $8.52 (rounded to the nearest cent) r=0.84731 2 = 0.71793 The percent of the total variance that can be explained by the regression equation is