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: Direct Labor Utilities Quarter Tons Mined Hours Cost Year 1: 33,ee First 6,800 4,800 5,800 7,80e $ 68,000 $ 63.000 Second 21,000 Third 38,000 $78.000 Fourth 30,e00 $93,000 Year 2: First 36,000 43,000 48,000 46,000 $118,000 $123,e00 $103.000 $138.000 15,800 14,800 13.800 Second Third Fourth 16,800 equired: a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost an the vertical axis. nstructions: . On the graph below, use ertical axis. 2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). B. To enter exact coordinates, click on the point and enter the values of x and y . To remove a point from the graph, click on the point and select delete option. the point tool (Year 1-1st quarter) to plot tons mined on the horizontal axis and utilities cost on the Required information 4. To remove a point from the graph, click on the point and select delete option. Year 1-1st quarter $160,000 Year 1-2nd $140,000- quarter $120.000- Year 1-3rd quarter 15100,000- S580 000- Year 1-4th quarter 5$60,000- Year 2-1st quarter $40,000- $20,000- Year 2-2nd quarter $0 0 10,000 20,000 30,000 40,000 50,000 60,000 Year 2-3rd Tons Mined quarter reset Utilities Cost 2-b. Using the least-squares regression method, estimate the varlable utilities cost per direct labor-hour and the total fixed utilities cost per quarter. Express these estimates in the form Y a bX. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) 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: Direct Labor- Utilities Quarter Year 1: Tons Mined Hours Cost First Second 33,000 21,e0e 38,000 30,000 6,800 4,800 5,800 7,800 s68,000 $ 63,000 $78,000 $93,000 Third Fourth Year 2: First 36,000 15, 800 14,800 $118,000 $123,000 $103,000 $138,000 Second 43,000 48,000 Third Fourth 13,800 16,800 46,000 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 Instructions: 1. On the graph below, use the point tool (Year 1-1st quarter) to plot tons mined on the horizontal axis and utilities cost on the Vertical axis 2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. 4. To remove a point from the graph, click on the point and select delete option. Year 1 1st quarter $160,000 Year 1-2nd quarter $140,000- $120,000- Year 1-3rd quarter 100,000- es S580,000- Year 1-4th quarter 5$60,000- Year 2-1st quarter $40,000- $20,000- Year 2-2nd quarter $0 20,000 10,000 30.000 40.000 50,000 60,000 Year 2-3rd Tons Mined quarter reset Year 2-1st quarter $40,000- $20,000- Year 2-2nd quarten 50- 10,000 20000 30.000 40,000 50,000 60.000 Year 2-3rd quarter Tons Mined reset 1-b. 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.) KG