Thane Company is interested in establishing the relationship between electricity costs and machine hours. Data have been collected and a regression analysis prepared using Excel. The monthly data and the regression output follow:

Month	Machine Hours	Electricity Costs
January	2,700	$	19,300
February	3,100	$	22,800
March	2,100	$	14,400
April	3,300	$	24,800
May	4,000	$	29,150
June	3,500	$	23,800
July	4,300	$	25,650
August	3,700	$	23,650
September	2,200	$	17,300
October	3,900	$	27,800
November	4,900	$	32,800
December	4,400	$	28,650

Summary Output
Regression Statistics
Multiple R	.954
R Square	.911
Adjusted R2	.902
Standard Error	1,645.83
Observations	12.00

	Coefficients	Standard Error	t Stat	P-value	Lower 95%	Upper 95%
Intercept	3,979.06	2,054.03	1.94	0.08	(597.59)	8,555.71
Machine Hours	5.76	0.57	10.11	0.00	4.49	7.03

If the controller uses regression analysis to estimate costs, the estimate of the variable portion of electricity cost is:

A. Variable Cost = $5.76 Machine-hours.

B. Variable Cost = $0.57 Machine-hours.

C. Variable Cost = $0.91 Machine-hours.

D. Variable Cost = $10.11 Machine-hours.