TB MC Qu. 8-100 (Algo) 420 maintenance hours in a month mean that maintenance costs should be budgeted at....: Hammer Company Hammer 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: Month Maintenance Cost Machine Hours January February March April May June July August $ 4,700 680 3,500 520 4,100 600 3,320 500 4,850 700 3,460 510 3,530 520 4,970 760 September 4,760 690 October 4,550 670 November 3,800 550 December 3,660 540 Sum $ 49,200 Average $ 4,100 Average cost per hour 7,240 $ 603 $ 7.00 a (intercept) b (coefficient) Standard error of the estimate R-squared t-value for b $ 3.86 6.7892 83.4170 0.98383 24.668 Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at Multiple Choice $2.938. $3,454. $2.953. $2,855. None of these answer choices are correct