The Management of Smoots Corporation Would Like for You to Analyze

Multiple Choice

The management of Smoots 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) $4.64 per machine-hour plus $34,603 per month
B) $2.09 per machine-hour plus $19,018 per month
C) $2.79 per machine-hour plus $13,787 per month
D) $2.00 per machine-hour plus $19,649 per month