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 20,000 14,000 25,000 17,000 5,500 3,500 4,500 6,500 $ 55,000 $ 50,000 $ 65,000 $ 80,000 23,000 30,000 35,000 33,000 12,500 11,500 10,500 13,500 $125,000 $130,000 $ 90,000 $130,000 2-a. Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours 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 direct labor-hours 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. 14. To remove a point from the graph. click on the point and select delete option. Year 1 - 15 quarter S140,000 Year 1 - 2nd quarter $120,000 Year 1-3rd quarter $100,000 Osa0,000 Year 1 - 4th quarter Utilities Cost $80,000 Year 2 - 1st quarter S40,000 $20,000 Year 2 - 2nd quarter SO 0 2,000 4,000 8,000 8,000 10,000 12,000 14,000 Year 2 - 3rd quarter Direct Labor-Hours Year 2-4th quarter 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 Y = a +bX. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Y= X