$,$ larr Variable cost per unit $($rounded to the nearest cent$)$

Incorrect

Step $5$: State the results in equation form $Y=f+vx.$

$Y=,+,x$

b$.$ Using the equation from above, substitute machine hours for $x$ and solve for $Y$ :

Incorrect

c$.$ Using the equation from part $a,$ substitute machine hours for $x$ and solve for $Y$ :

$Y,=,$

$Y,$

$,$ Scattergraph Method. Castilla Company produces smart phones. Management wants to estimate the cost of production equipment used to produce smart phones. The company reported the following monthly cost data related to production equipment $($this is the same data as the previous exercise$)$:

$\backslash$table$[[$Reporting Period $($Month$),$Total Costs,Machine Hours$],[$January$,$$$920,000,45,000],[$February$,600,000,25,000],[$March$,500,000,20,000],[$April$,1,100,000,90,000],[$May$,1,140,000,95,000],[$June$,620,000,30,000],[$July$,880,000,38,000],[$August$,910,000,48,000],[$September$,1,060,000,78,000],[$October$,960,000,51,000],[$November$,9,400,000,96,000],[$December$,980,000,54,000]]$

Required:

a$.$ Use the five steps of the scattergraph method to estimate total fixed costs per month and the variable cost per machine hour. State your results in the cost equation form $Y=f+vx$ by filling in the dollar amounts for $f$ and $v.$

b$.$ What would Castilla Company's estimated costs be if it used $50,000$ machine hours next month?

c$.$ What would Castilla Company's estimated costs be if it used $15,000$ machine hours next month?