a. Determine the fixed and variable cost components using excels regression analysis tool

b. What electricity cost does the cost equation estimate for the level of activity of 500 machine hours? By what amount does this difffer from March's observed cost for 500 machine hours?

c. What electricity cost does the cost equation estimate for a level activity of 700 machine hours? By what amount does this differ from june's observed codt for 700 machine hours?

P5.1A (LO 1,2), AP The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Machine Hours January February March April May June July August September October November December Total Electricity Costs $2,500 3,000 3,600 4,500 3,200 4,900 4,100 3,800 5,100 4,200 3,300 5,860 300 350 500 690 400 700 650 520 680 630 350 720