The following data were collected for the most recent twelvemonth period by the cost accountant in one of Richardson Company's manufacturing plants.

Required
Using the method of least squares, compute the fixed cost and the variable cost rate for electricity cost. Round estimates to the nearest cent.

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Electricity Cost $1,600 1,510 1,500 1,450 1,460 1,520 1,570 1,530 1,480 1,470 1,450 1,460 Machine Hours 2,790 2,680 2,600 2,500 2,510 2,610 2,750 2,700 2,530 2,520 2,490 2,520 Month January February.. March.... May.... June. July August.. September.... October.. November December..