Wallace Industries wanted to determine the relationship between its monthly operating costs and a potential cost driver,machine hours.The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here):
What is closest to the total cost if the firm uses 4,200 machine hours?

Question

Wallace Industries wanted to determine the relationship between its monthly operating costs and a potential cost driver,machine hours.The output of a regression analysis showed the following information (note: only a portion of the regression analysis results is presented here): 
What is closest to the total cost if the firm uses 4,200 machine hours?

Quizplus · Accepted Answer

A)
y = $ .718590832 (4,200)+ $2,945.95
Y = $5,964.03

Wallace Industries Wanted to Determine the Relationship Between Its Monthly