Required information Problem 5A-6 (Algo) Least Squares Regression; Scattergraph; Comparison of Activity Bases [LO5-11] 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: Quarter Year 1: Tons Mined Direct Labor- Hours Utilities Cost First 35,000 7,000 $ 70,000 Second 22,000 5,000 $ 65,000 Third 40,000 6,000 $ 80,000 Fourth 32,000 8,000 $ 95,000 Year 2: First 38,000 14,000 $ 120,000 Second 45,000 15,000 $125,000 Third 50,000 Fourth 48,000 12,000 15,000 $ 105,000 $ 140,000 Problem 5A-6 Part 1 (Algo) Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost on the vertical axis.