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 Hours Cost Tons Mined Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth 16,000 12,000 21,000 13,000 5,100 3,100 4,100 6,100 $ 51,000 $ 46,000 $ 61,000 $ 76,000 19,000 26,000 31,000 29,000 10,500 9,500 8,500 11,500 $ 105,000 $110,000 $ 86,000 $122,000 Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cos 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. Utilities Cost 140000 Tools 120000 Year 1 - 1st ql Year 1 - 2nd q 100000 80000 Year 1 - 3rd al Year 1 - 4th au Utilities Cost 140000 Tools 120000 Year 1 - 1st qu Year 1 - 2nd q 100000 80000 Year 1 - 3rd ql Year 1 - 4th qu 60000 40000 Year 2 - 1st qu Year 2 - 2nd q 20000 0 5000 10000 15000 25000 200002 30000 35000 Tons Mined 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.) Y = X