The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The companys 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	Tons Mined	Direct Labor-Hours			Utilities Cost
Year 1:
First	31,000		6,600		$	66,000
Second	20,000		4,600		$	61,000
Third	36,000		5,600		$	76,000
Fourth	28,000		7,600		$	91,000
Year 2:
First	34,000		13,200		$	116,000
Second	41,000		13,800		$	121,000
Third	46,000		11,200		$	101,000
Fourth	44,000		14,200		$	136,000

Garrison 17e Rechecks 2020-13-10

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. 4. To remove a point from the graph, click on the point and select delete option.

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.)

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 Tons Mined Labor-Hours Utilities Cost Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 31,000 20,000 36,000 28,000 6,600 4,600 5,600 7,600 $ 66,000 $ 61,000 $ 76,000 $ 91,000 34,000 41,000 46,000 44,000 13,200 13,800 11,200 14,200 $116,000 $121,000 $101,000 $136,000 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. 4. To remove a point from the graph, click on the point and select delete option. Year 1 - 1st quarter $180.000 Year 1 - 2nd quarter $150 000 Year 1-3rd quarter $120.000 $90,000 Yaar 1.4th quarter $60,000 Year 2 - 1st quarter $30,000 Year 2 - 2nd quarter $0 0 3,000 6,000 9.000 12,000 15.000 18.000 Year 2 - 3rd quarter Direct Labor-Hours reset 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= 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 Tons Mined Labor-Hours Utilities Cost Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 31,000 20,000 36,000 28,000 6,600 4,600 5,600 7,600 $ 66,000 $ 61,000 $ 76,000 $ 91,000 34,000 41,000 46,000 44,000 13,200 13,800 11,200 14,200 $116,000 $121,000 $101,000 $136,000 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. 4. To remove a point from the graph, click on the point and select delete option. Year 1 - 1st quarter $180.000 Year 1 - 2nd quarter $150 000 Year 1-3rd quarter $120.000 $90,000 Yaar 1.4th quarter $60,000 Year 2 - 1st quarter $30,000 Year 2 - 2nd quarter $0 0 3,000 6,000 9.000 12,000 15.000 18.000 Year 2 - 3rd quarter Direct Labor-Hours reset 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=