Green Care Limited manufactures environmentally friendly electric lawn mowers, and demand has been growing rapidly. Management would like to develop cost formulas for planning and decision making. The company's cost analyst has concluded that utilities cost is a mixed cost, and she is attempting to find an activity base with which the cost might be closely related. The controller has suggested that units produced might good base to use in developing a cost formula. The production superintendent disagrees; he thinks that direct labour-hours would be a better base since different lawn mower models have different production requirements. The cost analyst has decided to try both bases and has assembled the following information for the past eight months: be a Units Produced Labour-Hours Cost DirectUtilities January 60,00015,000 $200,000 February 44,000 9,000 180,000 March 84,000 12,000 240,000 April May June 100,000 27,000 420,000 July120,000 24,000 340,000 August 112,000 33,000 480,000 48,000 300,000 18,000 72,00030,000 400,000 Required: 1. Using units produced as the independent (X) variable a) Determine a cost formula for utilities cost using the least-squares regression 2. Using direct labour-hours as the independent (X) variable, repeat 1(a) above. nd that the cmnany use units oroduced or direct labour-hours Green Care Limited manufactures environmentally friendly electric lawn mowers, and demand has been growing rapidly. Management would like to develop cost formulas for planning and decision making. The company's cost analyst has concluded that utilities cost is a mixed cost, and she is attempting to find an activity base with which the cost might be closely related. The controller has suggested that units produced might good base to use in developing a cost formula. The production superintendent disagrees; he thinks that direct labour-hours would be a better base since different lawn mower models have different production requirements. The cost analyst has decided to try both bases and has assembled the following information for the past eight months: be a Units Produced Labour-Hours Cost DirectUtilities January 60,00015,000 $200,000 February 44,000 9,000 180,000 March 84,000 12,000 240,000 April May June 100,000 27,000 420,000 July120,000 24,000 340,000 August 112,000 33,000 480,000 48,000 300,000 18,000 72,00030,000 400,000 Required: 1. Using units produced as the independent (X) variable a) Determine a cost formula for utilities cost using the least-squares regression 2. Using direct labour-hours as the independent (X) variable, repeat 1(a) above. nd that the cmnany use units oroduced or direct labour-hours