Use the following to answer questions:
(CMA adapted) The following information has been accumulated to be used in preparing the 2008 annual budget for the Salem Corporation. The cost behavior pattern of the maintenance costs must be determined for this budget. The accounting staff has suggested that linear regression be employed to derive a cost estimation equation in the form of TC = F +VX for the total maintenance costs. Information regarding the maintenance hours and costs for 2007 and the partial results of the regression are as follows:

t-table for Single-Tailed Values of t

-Based upon the information from the regression analysis, the total maintenance costs budgeted for 420 hours of activity would be (rounded to the nearest whole dollar):
A) $3,746
B) $3,780
C) $3,797
D) $3,461

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Use the following to answer questions:
(CMA adapted) The following information has been accumulated to be used in preparing the 2008 annual budget for the Salem Corporation. The cost behavior pattern of the maintenance costs must be determined for this budget. The accounting staff has suggested that linear regression be employed to derive a cost estimation equation in the form of TC = F +VX for the total maintenance costs. Information regarding the maintenance hours and costs for 2007 and the partial results of the regression are as follows:
  
t-table for Single-Tailed Values of t
 
-Based upon the information from the regression analysis, the total maintenance costs budgeted for 420 hours of activity would be (rounded to the nearest whole dollar):
A) $3,746 
B) $3,780 
C) $3,797 
D) $3,461

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The Answer of Use the following to answer questions:
(CMA adapted) The following information has been accumulated to be used in preparing the 2008 annual budget for the Salem Corporation. The cost behavior pattern of the maintenance costs must be determined for this budget. The accounting staff has suggested that linear regression be employed to derive a cost estimation equation in the form of TC = F +VX for the total maintenance costs. Information regarding the maintenance hours and costs for 2007 and the partial results of the regression are as follows:
  
t-table for Single-Tailed Values of t
 
-Based upon the information from the regression analysis, the total maintenance costs budgeted for 420 hours of activity would be (rounded to the nearest whole dollar):
A) $3,746 
B) $3,780 
C) $3,797 
D) $3,461

Use the Following to Answer Questions