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 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: (CMA adapted) January February March April May June July August September October November December Sum Average Hours of Activity 630 690 880 640 1,080 700 690 1,130 1,050 1,010 780 750 10,020 835 Maintenance Costs $ 4,580 3,380 3,980 3,200 4,730 3,340 3,410 4,850 4,640 4,430 3,680 3,540 $ 47,760 3,980 1,768.18 2.6489 559.523 0.65535 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 404.251 0.62031 3.160 4.042 What is the variable cost per hour using the high-low method to estimate the cost equation? Multiple Choice $.54 $0.0095 $0.0081 $.65