Calculate the forecasted utility cost

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Question - 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.

Month

Utility cost

Machine 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

Using a regression program, the forecasted utility cost at 2,300 machine hours (rounded to the nearest dollar) is

a. $25,945.

b. $10,631.

c. $30,940.

d. $37,116.

Reference no: EM132133079

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