Margola Company Produces Hand-Held Calculators

Multiple Choice

Margola Company produces hand-held calculators.The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory.Data for the past four months were collected. ​
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Coefficients shown by a regression program are:
Intercept 1,150
X Variable 1 9.06
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Using the results of regression, the cost formula for maintenance cost was:

A) $1,150 × machine hours.
B) ($4,686 − $3,956) / (386 − 310) .
C) $9.06 × machine hours.
D) $1,150 + ($9.06 × machine hours) .