A B D G N M P6-6B. Least Squares Regression Analysis The management of Digger Inc., is trying to develop a cost formula for its major manufacturing overhead activities. Digger's manufacturing process is highly au- tomated and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed. The costs must be separated into their fixed and variable components so that the cost behavior of the power usage activity can be better understood. Analysts have determined that machine hours drive power usage, thus machine hours are the cost driver for power costs. Nine months of data have been collected and are presented in the chart below: + 5 5 8 9 PO 21 22 23 24 25 Period January February March April May June July August September Machine Hours Power Cost 36.000 $ 45,000 45,000 $ 60,300 54,000 $ 67,500 39,600 $ 53,064 37,800 $ 47,250 32,400 $ 43,416 43,200 $ 54.000 50,400 $ 67,536 46,800 $ 58,500 26 Required Use the high and low points to estimate a power cost formula. 27 a. 28 Sheet1