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Question
Figure 3-14.
Blacken Company manufactures motorcycles. The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory. Data for the past five months were collected.
Utility Machine
Month cost hours
March $30,255 2,200
April 32,750 2,525
May 34,712 2,710
June 31,850 2,410
July 30,720 2,290
Refer to Figure 3-14. Using a regression program, the yearly utility cost equation (with all variables to the nearest penny) is
a. total utility cost = $127,569.60 + ($8.83 × machine hours).
b. total utility cost = $10,630.80 + ($8.83 × machine hours).
c. total utility cost = $8.83 + ($10,630.80 × machine hours).
d. total utility cost = $10,630.80 − ($8.83 × machine hours).
Answer
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