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Required information Skip to question The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The companys cost analyst has

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The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The companys 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:

Quarter Tons Mined Direct Labor-Hours Utilities Cost
Year 1:
First 29,000 6,400 $ 64,000
Second 19,000 4,400 $ 59,000
Third 34,000 5,400 $ 74,000
Fourth 26,000 7,400 $ 89,000
Year 2:
First 32,000 12,800 $ 132,000
Second 39,000 13,200 $ 135,000
Third 44,000 10,800 $ 99,000
Fourth 42,000 13,800 $ 140,000

Garrison 17e Rechecks 2020-13-10

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.

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 = a + bX. (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)

image text in transcribed

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. Your Graph Score: 0% Utilities Cost 140000 120000 Year 1 - 1st qu Year 1 - 2nd 100000 80000 Year 1 - 3rd qu Year 1. 4th qu 60000 40000 Year 2- 1st qu Year 2 - 2nd q 20000 0 10000 20000 30000 40000 50000 60000 Tons Mined 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 = a +bX. (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)

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