The Armer 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:

	Hours of Activity		Maintenance Costs
January	470		$ 4,000
February	280		2,600
March	410		3,100
April	260		2,670
May	540		4,260
June	280		3,170
July	340		3,070
August	460		4,050
September	450		4,240
October	530		4,090
November	370		3,600
December	330		3,460
Sum	4,720		42,310
Average	393		3,526

A coefficient			1,367.00
B coefficient			5.4886
Standard error of the a cofficient	358.171
Standard error of the a cofficient	.88593
Standard error of the estimate			286.890
R2			0.79331
T-value a			3.817
T-value b			6.195

Based upon the data derived from the regression analysis, 410 maintenance hours in a month would mean the maintenance costs would be budgeted at: (rounded to the nearest whole dollar)