ment Help Save & E Che The Hard Rock Mining Company is developing cost formulas for management planning and decision making purposes. The company's cost analyst has concluded that utlities 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 La Tons Mined Hours Quarter Year 1: Cost First Second Third Fourth 29,000 19,000 34,000 26,000 6,400 4,400 5,400 7,400 64,000 59,000 74,000 89,000 Year 2: 32,000 39,000 44,000 42,000 13,800 $132,000 12,800 $135,000 First Second Third Fourth 11,800 99,000 14,800 $140,000 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 Ya a + bX. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)