Figure 3-12

Multiple Choice

Figure 3-12.The method of least squares was used to develop a cost equation to predict the cost of monthly equipment maintenance. The following computer output was received:
The driver used was the number of machine hours.
-Refer to Figure 3-12. What was the cost formula for equipment maintenance?

A) total maintenance cost = $25 * machine hours
B) total maintenance cost = $32,000
C) total maintenance cost = $32,000 + ($25 * machine hours)
D) None of these are correct.