Coefficients for the costs of maintenance, using machine hours as the driver, are shown by a regression program to be:
Intercept 7,600
X Variable 1 5.10
Required:
A. Using the results of regression, calculate the fixed cost of maintenance and the variable rate per machine hour.
B. Using the results of regression, construct the cost formula for the total maintenance cost.
C. Calculate the budgeted cost for maintenance assuming that 610 hours are worked next month.

Question

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The Answer of Coefficients for the costs of maintenance, using machine hours as the driver, are shown by a regression program to be:
Intercept 7,600
X Variable 1 5.10
Required:
A. Using the results of regression, calculate the fixed cost of maintenance and the variable rate per machine hour.
B. Using the results of regression, construct the cost formula for the total maintenance cost.
C. Calculate the budgeted cost for maintenance assuming that 610 hours are worked next month.

Coefficients for the Costs of Maintenance, Using Machine Hours as the Driver