Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below: Machine-Hours Repair Costs April 2,135 $ 33,089
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:
Machine-Hours | Repair Costs | ||||||
April | 2,135 | $ | 33,089 | ||||
May | 2,164 | $ | 33,107 | ||||
June | 2,121 | $ | 33,084 | ||||
July | 2,188 | $ | 33,107 | ||||
August | 2,106 | $ | 33,017 | ||||
September | 2,204 | $ | 33,171 | ||||
October | 2,132 | $ | 33,058 | ||||
November | 2,199 | $ | 33,144 | ||||
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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started