! Required information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's 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: Direct Labor- Quarter Year 1: First Second Tons Mined Hours Utilities Cost 20,000 5,500 $ 55,000 14,000 3,500 $ 50,000 Third 25,000 4,500 $ 65,000 Fourth 17,000 6,500 $ 80,000 Year 2: First 23,000 11,000 $ 125,000 Second 30,000 10,500 Third 35,000 9,000 Fourth 33,000 12,000 $ 130,000 $ 90,000 $ 130,000