Multiple Choice

• 92.630%.

• 62.479%.

• 92.589%.

• 73.858%

• 92.451%.

TB MC Qu. 8-35 Midgett Co. has accumulated data ... 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 Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Maintenance Machine Cost Hours $ 5,090 660 3,672 460 4,450 590 3,347 370 5,215 690 3,390 450 3,655 430 5,355 670 5,112 660 4,884 570 3,934 430 3,990 480 $ 52,094 6,460 $4,341.17 538.33 Dec. Sum Average Average cost per hour ($52,094/6.460) = $8.06 (rounded to the nearest cent) r = 0.96223 r2 = 0.92589 The percent of the total varlance that can be explained by the regression equation is