Recent maintenance costs of Pavelko 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) $3.26
B) $13.45
C) $2.00
D) $2.96

Question

Recent maintenance costs of Pavelko 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) $3.26 
B) $13.45 
C) $2.00 
D) $2.96

Quizplus · Accepted Answer

The Answer is D

Recent Maintenance Costs of Pavelko Corporation Are Listed Below