TB MC Qu. 5-56 (Algo) The McGraw Company is accumulating... The McGraw Company is accumulating data to be used 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 that linear regression be employed to derive an equation in the form of y= a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) January February March April May June July August September October November December Hours of Activity 580 350 460 330 560 354 350 580 550 530 400 380 January February March April May June July August September October November December Sum Average 580 350 460 330 560 354 350 580 550 530 400 380 5,424 452 108.488 0.23465 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b Using the high-low method to estimate cost behavior, 435 maintenance hours in a month would mean the maintenance costs would be budgeted at: Multiple Choice $3,460. O O $3,300. O $2,930. O $3,510