(Appendix 2A)The Management of Bandle Corporation Would Like for You

Multiple Choice

(Appendix 2A) The management of Bandle 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) $6.72 per machine-hour plus $55, 230 per month
B) $6.80 per machine-hour plus $54, 679 per month
C) $7.28 per machine-hour plus $51, 389 per month
D) $14.66 per machine-hour plus $101, 993 per month