3 Required information 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 Utilities Quarter Tons Mined Labor-Hours Cost Year 1: First 22,000 5,700 $ 57,000 Second 15,000 3,700 $ 52,000 Third 27,000 4,700 $ 67,000 Fourth 19,000 6,700 $ 82,000 Year 2: First 25,000 10,700 $107,000 Second 32,000 9,700 $112,000 Third 37,000 8,700 $ 92,000 Fourth 35,000 11,000 $127,800 Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost 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. Required information art 1 of 3 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. nts eBook Print Utilities Cost 140000 Tools ferences 120000 Year 1 - 1st Year 1 - 2nd Q 100000 80000 Year 1 - 3rd q Year 1 - 4th qu 60000 40000 Year 2 - 1st L Year 2 - 2nd q 20000 0 10000 30000 50000 20000 40000 60000 nem GC MI 1 Required information 40000 1 of 3 Year 2 - 1st Year 2 - 2nd g 20000 0 10000 30000 50000 20000 40000 60000 Tons Mined Book Print erences 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 = + BX (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) 3 Required information 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 Utilities Quarter Tons Mined Labor-Hours Cost Year 1: First 22,000 5,700 $ 57,000 Second 15,000 3,700 $ 52,000 Third 27,000 4,700 $ 67,000 Fourth 19,000 6,700 $ 82,000 Year 2: First 25,000 10,700 $107,000 Second 32,000 9,700 $112,000 Third 37,000 8,700 $ 92,000 Fourth 35,000 11,000 $127,800 Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost 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. Required information art 1 of 3 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. nts eBook Print Utilities Cost 140000 Tools ferences 120000 Year 1 - 1st Year 1 - 2nd Q 100000 80000 Year 1 - 3rd q Year 1 - 4th qu 60000 40000 Year 2 - 1st L Year 2 - 2nd q 20000 0 10000 30000 50000 20000 40000 60000 nem GC MI 1 Required information 40000 1 of 3 Year 2 - 1st Year 2 - 2nd g 20000 0 10000 30000 50000 20000 40000 60000 Tons Mined Book Print erences 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 = + BX (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)