(Appendix 2A)The management of Bandle Corporation would like for you to analyze their repair costs, which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:
A)$6.72 per machine-hour plus $55, 230 per month
B)$6.80 per machine-hour plus $54, 679 per month
C)$7.28 per machine-hour plus $51, 389 per month
D)$14.66 per machine-hour plus $101, 993 per month

Question

(Appendix 2A)The management of Bandle Corporation would like for you to analyze their repair costs, which are listed below:  Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:
A)$6.72 per machine-hour plus $55, 230 per month 
B)$6.80 per machine-hour plus $54, 679 per month 
C)$7.28 per machine-hour plus $51, 389 per month 
D)$14.66 per machine-hour plus $101, 993 per month

Quizplus · Accepted Answer

Using Microsoft Excel, the solution is:
 11eaa0c8_9717_bd06_9cb2_e91f750eaa22_TB2487_00

(Appendix 2A)The Management of Bandle Corporation Would Like for You