question 4 & 5

amework S Help Save & Ext Sul Check my we Required information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities 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: Tons Mined Direct Labor- Utilities Hours Cost Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 26,000 17,000 31, eee 23,00 6.100 4,100 5,100 7,100 $ 61,080 $ 56,000 $ 71,00 $ 86,000 29,000 36.000 41,eee 39, eee 12,200 12,3ee 10,200 13,200 $123, e89 $128, eee $ 96, eee $134,000 Required: 1. Using the least-squares regression method, estimate the variable utilities cost per ton mined and the total fixed utilities cost per quarter. Express these estimates in the form Y = a + bx (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)