Question

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:

Answer 1

The question is incomplete.

The management of Ferry Corporation would like you to analyze their repair costs, which are listed below: see attachment

(Options)

a. $1.08 per machine-hour plus $30, 761 per month

b. $.81 per machine-hour plus $31, 736 per month

c.$15.10 per machine-hour plus $33, 700 per month

d. $1.35 per machine-hour plus $30.170 per month

Answer:

d. $1.35 per machine-hour plus $30.170 per month

Step-by-step explanation:

See attachment