The management of Hamano 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) $22.11 per machine-hour plus $98,497 per month
B) $7.37 per machine-hour plus $65,670 per month
C) $8.19 per machine-hour plus $62,015 per month
D) $7.55 per machine-hour plus $64,859 per month

Question

The management of Hamano 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) $22.11 per machine-hour plus $98,497 per month 
B) $7.37 per machine-hour plus $65,670 per month 
C) $8.19 per machine-hour plus $62,015 per month 
D) $7.55 per machine-hour plus $64,859 per month

Quizplus · Accepted Answer

Using Microsoft Excel, the solution is:
 11ea7761_1887_fea7_81a5_dbfa5938ae82_TB2580_00

The Management of Hamano Corporation Would Like for You to Analyze