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) Hours of Activity Maintenance Costs January 470 $ 4,460 February 540 3,260 March 690 3,860 April 500 3,080 May 840 4,610 June 550 3,220 July 540 3,290 August 880 4,730 September 820 4,520 October 790 4,310 November 3,560 December 580 3,420 Sum Average 7,800 650 $ 46,320 3,860 1,748.60 3.2483 A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate 584.110 0.87845 426.389 R2 T-value a T-value b 0.57758 2.994 3.698 What would be the cost equation if the high-low method is used? Multiple Choice Maintenance Costs $3,960 ($650 x Hours of Activity). Maintenance Costs $2.16 x Hours of Activity. Maintenance Costs $4,150 ($0.66 x Hours of Activity). Maintenance Costs $426.399 ($0.57758x Hours of Activity).