Determine the Total Cost equation using OLS2) Determine the fixed- and variable-cost components using the high-low method.3) What electricity cost does the cost equation estimate for a level of activity of 500 machine hours? By what amount does this differ from March's observed cost for 500 machine hours?4) What electricity cost does the cost equation estimate for a level of activity of 700 machine hours? By what amount does this differ from June's observed cost for 700 machine hours?5) Prepare a CVP graph

The controller of Rather Production has collected the following monthly expense data for analyzing the cost behavior of electricity costs. Total Electricity Costs Total Machine Hours 300 January February March 350 $2,500 3,000 3,600 4,500 3,200 500 690 April May 400 June 4,900 700 650 520 July August September October 680 4,100 3,800 5,100 4,200 3,300 5,860 630 November 350 December 720 Required: 1) Determine the Total Cost equation using OLS 2) Determine the fixed- and variable-cost components using the high-low method. 3) What electricity cost does the cost equation estimate for a level of activity of 500 machine hours? By what amount does this differ from March's observed cost for 500 machine hours? 4) What electricity cost does the cost equation estimate for a level of activity of 700 machine hours? By what amount does this differ from June's observed cost for 700 machine hours? 5) Prepare a CVP graph