The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:

	Machine-Hours	Repair Costs
April	2,148	$ 33,102
May	2,177	$ 33,120
June	2,134	$ 33,097
July	2,214	$ 33,120
August	2,119	$ 33,030
September	2,230	$ 33,184
October	2,145	$ 33,071
November	2,225	$ 33,157

Management believes that repair cost is a mixed cost that depends on the number of machine-hours. Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:

Multiple Choice

$1.25 per machine-hour plus $30,387 per month

$0.80 per machine-hour plus $31,953 per month

$0.98 per machine-hour plus $30,978 per month

15.00 per machine-hour plus $33,917 per month