Method Of Least Squares. The following data were collected for the most recent twelve-month period by the cost accountant in one of Axelrod Company’s manufacturing plants.

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