Recent maintenance costs of Divers Corporation are listed below: Machine-Hours Maintenance CostsFebruary527  $5,144March499  $5,033April542  $5,220May541  $5,196June489  $4,973July543  $5,200August558  $5,288September513  $5,060 Management believes that maintenance cost is a mixed cost that depends on machine-hours. Using the least-squares regression method, the estimate of the variable component of maintenance cost per machine-hour is closest to:

A. $9.76
B. $4.57
C. $4.43
D. $6.00


Answer: C

Business

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