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Calculate the fixed cost of maintenance

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Reference no: EM132676683

Coefficients shown by a regression program are:

Intercept 7,600X

Variable 15.10

The cost driver used is machine hours.

Required:

Problem A. Using the results of regression, calculate the fixed cost of maintenance and the variable rate per machine hour.

Problem B. Using the results of regression, construct the cost formula for the total maintenance cost.

Reference no: EM132676683

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