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 with which the cost might be closely correlated. 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 18,000 5,300 $ 53,000 Second 13,000 3,300 $ 48,000 Third 23,000 4,300 $ 63,000 Fourth 15,000 6,300 $ 78,000 Year 2: First 21,000 11,500 $ 115,000 Second 28,000 10,500 $ 120,000 Third 33,000 9,500 $ 88,000 Fourth 31,000 12,500 $ 126,000