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Required Information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information: Direct Labor- Utilities Cost Tons Mined Hours Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 27,800 18,888 32,600 24, eee 6, 20e 4,200 5, 2ee $ 62,080 $ 57,080 $ 72,eee $ 87,080 7,200 32.ee 37, eee 42,800 40,000 12,488 12,680 19,480 13,480 $128,888 $133,000 $ 97,eee $136, eee 2-a. Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours on the horizontal axis and utilities cost on the vertical axis. Instructions: 1. On the graph below, use the polnt tool (Year 1-1st quarter) to plot direct labor-hours on the horizontal axls and utilitles cost on the Vertical axis. 2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). 3. To enter exact coordinates, click on the polnt and enter the values of x and y. 4. To remove a polnt from the graph, click on the polnt and select delete option. Year 1 - 1st quarter $180,000 Year 1 - 2nd quarter $150,000 Year 1 and quarter $120,000 $90,000 Year 1 - 4th quarter $60,000 Year 2 - 15 quarter $30,000 Year 2 - 2nd quarter $0 0 3.000 5.000 9,000 12,000 15,000 18,000 Year 2. 3rd | quarter Direct Labor-Hours reset 2-b. Using the least-squares regression method. estimate the variable utilities cost per direct labor-hour and the total fixed utilities cost per quarter. Express these estimates in the form Y = a +bX. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Y=

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