Gelrud Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:
A)$8.15
B)$5.78
C)$5.57
D)$5.85

Question

Gelrud Corporation's recent utility costs are listed below: Management believes that utility cost is a mixed cost that depends on machine-hours.
-Using the least-squares regression method,the estimate of the variable component of utility cost per machine-hour is closest to:
A)$8.15 
B)$5.78 
C)$5.57 
D)$5.85

Quizplus · Accepted Answer

Using Microsoft Excel functions,the solution is:
Utility cost per machine-hour = Slope = $5.85

Gelrud Corporation's Recent Utility Costs Are Listed Below: Management Believes