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: QuarterTons Mined Direct Labor-Hours Utilities Cost Year 1: First25,000 6,000 $60,000 Second17,000 4,000 $55,000 Third30,000 5,000 $70,000 Fourth22,000 7,000 $85,000 Year 2: First28,000 12,000 $118,000 Second35,000 12,000 $123,000 Third40,000 10,000 $95,000 Fourth38,000 13,000 $132,000 Garrison 17e Rechecks 2020-13-10 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.) 2. 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.) 3.Would you recommend that the company use tons mined or direct labor-hours as a base for planning utilities cost? multiple choice Direct labor-hours Tons mined