(Appendix 2A)Recent Maintenance Costs of Gallander Corporation Are Listed Below

Multiple Choice

(Appendix 2A) Recent maintenance costs of Gallander Corporation are listed below: Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the least-squares regression method, the estimate of the variable component of maintenance cost per machine-hour is closest to:

A) $1.85
B) $10.30
C) $1.67
D) $1.90