Chapter 3 Homework Scatterplot, High-Low Method, Regression eBook The management of Wheeler Company has decided to develop cost formulas for its major overhead activities. Wheeler uses a highly automated manufacturing process, and power costs are a significant manufacturing cost. Cost analysts have decided that power costs are mixed; thus, they must be broken into their fixed and variable elements so that the cost behavior of the power usage activity can be properly described. Machine hours have been selected as the activity driver for power costs. The following data for the past eight quarters have been collected: Quarter Machine Hours Power Cost 1 20,000 $26,000 2 25,000 38,000 3 30,000 42,500 4 22,000 35,000 5 21,000 34,000 > 6 18,000 31,400 7 24,000 36,000 8 28,000 42,000 Required: 1. Based on the information provided, select the scattergraph that correctly plots the power costs against machine hours. a. b. Scattergraph of Power Activity $50,000 $40,000 $30,000 $20,000 $10,000 $0 40.000 Scattergraph of Power Activity $50,000 $40,000 $30,000 $20,000 $10,000 $0 20.000 50 000 40.000 20000 40.000 Check My Work 1 more Check My Work uses remaining. Assignment Score: 52.14% All work saved. Save and Exit CO Previous Next > Submit Assignment for Grading