Q 75

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 variable cost per machine hour is:
A)$6.25.
B)$6.90.
C)$5.77.
D)$11.70.

Q 76

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.

Q 77

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 cost equation for electricity cost is:
A)Cost = $3,726.88 + $5.77 × Machine-hours.
B)Cost = $1,625.00 + $6.25 × Machine-hours.
C)Cost = $6.90 × Machine-hours.
D)Cost = $22,825.