The McGraw 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 ya + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) January February March April May June July August September October November December Sum Average Hours of Activity 630 420 540 380 660 430 420 690 640 610 480 460 6,360 530 Maintenance Costs $ 4,340 3, 140 3,740 2,960 4,490 3,100 3,170 4,610 4,400 ,190 3,440 3,300 $ 44,880 3,740 757.57 5.6272 70.211 0.12989 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 T-value a T-value b 47.762 0.99470 10.790 43.321 What is the fixed cost per month using the high-low method to estimate the cost equation? Multiple Choice . $3,700. $1,870. $938 $980