The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below: Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:

Question

The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:  Management believes that repair cost is a mixed cost that depends on the number of machine-hours.Using the least-squares regression method, the estimates of the variable and fixed components of repair cost would be closest to:

Quizplus · Accepted Answer

Using Microsoft Excel, the solution is: 11ea7998_5e32_8402_911b_595e6bac6a75_TB2627_00_TB2627_00 Reference: APP06A-Ref1
One of Matthew Corporation's competitors has learned that Matthew has a total expense per unit of $1.50 at the 15,000 unit level of activity and total expense per unit of $1.45 at the 20,000 unit level of activity.Assume that the relevant range includes all of the activity levels mentioned in this problem.

The Management of Hamano Corporation Would Like for You to Analyze