Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow: If the controller uses the high-low method to estimate costs,the fixed cost portion of the cost equation for electricity cost is:
A)$3,726.88.
B)$1,425.18.
C)$1,625.00.
D)$22,825.00.

Question

Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow:  If the controller uses the high-low method to estimate costs,the fixed cost portion of the cost equation for electricity cost is:
A)$3,726.88. 
B)$1,425.18. 
C)$1,625.00. 
D)$22,825.00.

Quizplus · Accepted Answer

The Answer of Thul Company is interested in establishing the relationship between electricity costs and machine hours.Data have been collected and a regression analysis prepared using Excel.The monthly data and the regression output follow:  If the controller uses the high-low method to estimate costs,the fixed cost portion of the cost equation for electricity cost is:
A)$3,726.88. 
B)$1,425.18. 
C)$1,625.00. 
D)$22,825.00.

Thul Company Is Interested in Establishing the Relationship Between Electricity