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:

Month	Maintenance Cost				Machine Hours
Jan.	$	5,040				620
Feb.		3,648				420
Mar.		4,320				520
Apr.		3,331				390
May		5,221				650
June		3,550				400
July		3,655				430
Aug.		5,365				690
Sept.		5,110				640
Oct.		4,866				610
Nov.		3,944				460
Dec.		3,790				440
Sum	$	51,840				6,270
Average	$	4,320.00				522.50

Average cost per hour ($51,840/6,270) = $8.27 (rounded to the nearest cent) r = 0.99821 r² = 0.99780 Using the high-low method, total maintenance cost for 600 hours is calculated to be (round to the nearest dollar):

• $5,528.

• $4,755.

• $4,777.

• $5,293.

• $5,656.