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The Rumler Company Used Regression Analysis to Predict the Annual

Question 114

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The Rumler Company used regression analysis to predict the annual cost of utilities.The results were as follows:
 Utilities Cost  Explained by Direct Labor Hours  Constant 4,500 Standard error of Y estimate 595 R-Squared 0.87 No. of observations 30 Degrees of freedom 28 X Coefficient 5.04 Standard error fofficient 0.92\begin{array}{ll}&\text { Utilities Cost }\\&\text { Explained by Direct Labor Hours }\\\text { Constant } & 4,500 \\\text { Standard error of } Y \text { estimate } & 595 \\\text { R-Squared } & 0.87 \\\text { No. of observations } & 30 \\\text { Degrees of freedom } & 28 \\\text { X Coefficient } & 5.04 \\\text { Standard error fofficient } & 0.92\end{array}
The total fixed cost is ________.


A) $5.04 times number of direct labor hours
B) $595
C) $4,500
D) none of the above

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