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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.)
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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