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