Marigold Company makes furniture.The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory.Data for the past four months were collected as follows:

Coefficients shown by a regression program are as follows:

-
Using the results of regression, calculate the variable rate of the electricity cost.
A) $6.39 per machine hour
B) $7.25 per machine hour
C) $5.75per machine hour
D) None of these are correct.

Question

Marigold Company makes furniture.The company controller wanted to calculate the fixed and variable costs associated with electricity use in the factory.Data for the past four months were collected as follows: 
 
 Coefficients shown by a regression program are as follows:

-
Using the results of regression, calculate the variable rate of the electricity cost.
A) $6.39 per machine hour 
B) $7.25 per machine hour 
C) $5.75per machine hour 
D) None of these are correct.

Quizplus · Accepted Answer

As the slope corresponds to the variable rate?, the variable rate of the
electricity cost is $7.25 per machine hour.

Marigold Company Makes Furniture