(Appendix 5A) Recent maintenance costs of Divers Corporation are listed below:
Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:
A) $9.76
B) $6.00
C) $4.43
D) $4.57

Question

(Appendix 5A) Recent maintenance costs of Divers Corporation are listed below:
  Management believes that maintenance cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of maintenance cost per machine-hour is closest to:
A) $9.76 
B) $6.00 
C) $4.43 
D) $4.57

Quizplus · Accepted Answer

Using Microsoft Excel functions, the solution is:
Maintenance cost per machine-hour = Slope = $4.43

(Appendix 5A) Recent Maintenance Costs of Divers Corporation Are Listed