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 fixed component of maintenance cost per month is closest to:
A) $7,826
B) $6,036
C) $7,950
D) $6,199

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 fixed component of maintenance cost per month is closest to:
A) $7,826 
B) $6,036 
C) $7,950 
D) $6,199

Quizplus · Accepted Answer

The Answer is D

Recent Maintenance Costs of Pavelko Corporation Are Listed Below