Recent maintenance costs of Prideaux 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)$9.36
B)$9.49
C)$14.06
D)$9.23

Question

Recent maintenance costs of Prideaux 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)$9.36 
B)$9.49 
C)$14.06 
D)$9.23

Quizplus · Accepted Answer

Using Microsoft Excel functions,the solution is:
Maintenance cost per machine-hour = Slope = $9.49

Recent Maintenance Costs of Prideaux Corporation Are Listed Below