The Management of Hamano Corporation Would Like for You to Analyze

Multiple Choice

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:

A) $1.47 per machine-hour plus $29,915 per month
B) $0.83 per machine-hour plus $31,481 per month
C) $1.20 per machine-hour plus $30,506 per month
D) 15.22 per machine-hour plus $33,445 per month