The Schmidt Company used regression analysis to predict the annual cost of indirect materials. The results were as follows:

Indirect Materials Cost

Explained by Units Produced

Constant |
$4,378 |

Standard error of Y estimate |
$ 912 |

R-squared |
0.9183 |

No. of observations |
12 |

Degrees of freedom |
10 |

X coefficient(s) |
2.35 |

Standard error of coefficient(s) |
0.437525 |

66) The total fixed cost is

A) 912.

B) $4,378.

C) $918.

D) $4,020.

A) $1.03.

B) $0.92.

C) $2.35.

D) $0.44.

68) The linear cost function is

A) Y = $4,378 + $2.35X.

B) Y = $ 912 + $1.03X.

C) Y = $4,020 + $0.92X.

D) Y = $ 918 + $0.44X.

69) The coefficient of determination is

A) 0.437525.

B) 12.

C) 2.35.

D) 0.9183.

70) The independent variable (activity) selected should have a high degree of correlation with the dependent variable (cost) as indicated by a coefficient of determination that is:

A) close to -1

B) close to +1

C) equal to 0

D) none of the above

Use the following information to answer the next question(s).

The following information was collected regarding maintenance costs at different activity levels measured in machine hours:

Number of Machine Hours |
Total Maintenance Costs |

8,000 |
$600,000 |

10,000 |
640,000 |

11,000 |
800,000 |

9,000 |
700,000 |

14,000 |
900,000 |

12,000 |
870,000 |

71) Using the high-low method, an estimate of the variable component for maintenance costs is

A) $50.00.

B) $52.50.

C) $64.28.

D) $75.00.

72) Using the high-low method, an estimate of the fixed portion of maintenance costs is

A) $165,000.

B) $200,000.

C) $224,000.

D) $300,000.

73) Using the cost formula developed under the high-low method, what would be the estimate of maintenance costs if 13,000 machine hours are scheduled for next month

A) $650,000.

B) $950,000.

C) $850,000.

D) $882,000.

Use the following information to answer the next question(s).

The method of least squares produced the following computer printout using direct labour hours as the activity.

Intercept |
20,318.00 |

Slope |
42.00 |

Correlation Coefficient |
.90 |

74) The estimate of the variable component for maintenance costs is

A) $37.80.

B) $42.00.

C) $46.67.

D) $47.00.

75) The estimate of the fixed component for maintenance costs is

A) $18,286.

B) $20,276.

C) $20,318.

D) $20,360.

76) If 5,000 machine hours are scheduled, an estimate of maintenance costs is

A) $253,318.

B) $230,726.

C) $230,360.

D) $230,318.

77) The coefficient of determination costs is

A) 0.73.

B) 0.81.

C) 0.90.

D) 1.00.

78) The coefficient of determination indicates

A) the percentage of change in the dependent variable explained by changes in the independent variable.

B) the percentage of change in the dependent variable caused by changes in the independent variable.

C) the percentage of change in the independent variable explained by changes in the dependent variable.

D) the percentage of change in the independent variable caused by changes in the dependent variable.