Applying the Scattergraph Method [LO2 CC10] Oki Products, Ltd. has observed the following processing costs at various levels of activity over the past 10 months: Month Units Produced Processing Cost 1 2,500 $28,000 2 11,000 52,000 3 15,000 59,000 4 5,500 38,000 5 9,000 47,000 6 8,500 52,000 7 7,500 44,000 8 7,000 41,000 9 11,500 52,000 10 6,000 41,000 Required: Prepare a scattergraph by plotting these data on a graph. Plot cost on the vertical axis and units produced on the horizontal axis. Fit a line to your plotted points by visual inspection. What is the approximate monthly fixed cost? The approximate variable cost per unit processed? Show your computations. BRIEF EXERCISE 64 Applying the Least-Squares Regression Method [LO2 CC11] Required: Using the data in Brief Exercise 63, repeat part (2) using least-squares regression (using any spreadsheet software). Is units produced a reliable basis for estimating processing costs?