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What is the variable cost per machine hour? Big Time Corporation wanted to determine the relationship between its monthly operating costs and a potential cost
What is the variable cost per machine hour?
Big Time Corporation wanted to determine the relationship between its monthly operating costs and a potential cost driver, machine hours. The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here): SUMMARY OUTPUT Regression Stabsbcs Muttjple R R Square Adjusted R Standard Error Observations ANOVA Regression Residual Total Intercept X Variable I 0.991108748 0.982296551 0.977870689 67.58593536 6 I 4 5 Coefficients 2945.94652 0.718590832 ss 1013811.899 18271.43463 1032083.333 Standard Error 194.105844 004823467 MS 1013811.899 4567.858659 t Stat 15.17701095 14.89780767 221.9446735 p.value 0.000109885 0.00011823 Significance F 0.00011823 Lower 95% 2407.022299 0.584669919 What is the variable cost per machine hour (rounded to the nearest cent)? clu
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