In: Accounting
The management of Hamano Corporation would like for you to analyze their repair costs, which are listed below:
Machine-Hours | Repair Costs | ||||||
April | 2,152 | $ | 33,106 | ||||
May | 2,181 | $ | 33,124 | ||||
June | 2,138 | $ | 33,101 | ||||
July | 2,222 | $ | 33,124 | ||||
August | 2,123 | $ | 33,034 | ||||
September | 2,238 | $ | 33,188 | ||||
October | 2,149 | $ | 33,075 | ||||
November | 2,233 | $ | 33,161 | ||||
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: