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determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding th maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of Activity 480 320 January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs $ 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $43,200 3,600 684.65 7.2884 34.469 0.99724

determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding th maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of Activity 480 320 January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R2 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs $ 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $43,200 3,600 684.65 7.2884 34.469 0.99724

Principles of Accounting Volume 2
Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 9EA: The cost data for Evencoat Paint for the year 2019 is as follows: Using the high-low method, express...
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The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R² T-value a T-value b Activity 480 320 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ $ 43,200 3,600 684.65 7.2884 34.469 0.99724 13.827 60.105 What is the variable cost per hour using the high-low method to estimate the cost equation?
Transcribed Image Text:The McGraw Company is accumulating data to be used in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested that linear regression be employed to derive an equation in the form of y = a + bx for maintenance costs. Data regarding the maintenance hours and costs for last year and the results of the regression analysis are as follows: (CMA adapted) Hours of January February March April May June July August September October November December Sum Average A coefficient B coefficient Standard error of the a coefficient Standard error of the b coefficient Standard error of the estimate R² T-value a T-value b Activity 480 320 400 300 500 310 320 520 490 470 350 340 4,800 400 49.515 0.12126 Maintenance Costs 4,200 3,000 3,600 2,820 4,350 2,960 3,030 4,470 4,260 4,050 3,300 3,160 $ $ 43,200 3,600 684.65 7.2884 34.469 0.99724 13.827 60.105 What is the variable cost per hour using the high-low method to estimate the cost equation?
What is the variable cost per hour using the high-low method to estimate the cost equation? Multiple Choice O O $9.00. $0.1111. $0.1333. $7.50.
Transcribed Image Text:What is the variable cost per hour using the high-low method to estimate the cost equation? Multiple Choice O O $9.00. $0.1111. $0.1333. $7.50.
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