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 formule. 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 Year 1: First Second Third Fourth Year 2: First Second Third Fourth Direct Tons Mined Labor-Hours 22,000 5,700 15,000 3,700 27,000 4,700 19,000 6,780 Utilities Cost $ 57,000 $ 52,000 $ 67,000 $ 82,000 25,000 32,000 37,000 35,000 10,700 9,700 8,700 11,000 $107.000 $112,000 $ 92,000 $127.000 2-a. Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours 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 direct labor-hours 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. Required information Year 1. 1st quarter S140,000 Year 1 - 2nd quarter $120,000 $100.000 Year 1.3rd Quarter 8580.000 Utilities Cost Year 1.4m quarter $60,000 $40,000 Year 2.15 quarter $20.000 Year 2-2nd quarter $0 0 2,000 4,000 6,000 8,000 10,000 12.000 14,000 Direct Labor-Hours Year 23rd quarter reset ven! 2 Required information $40,000 of 3 Year 2-16 quarter $20,000 Year 2nd Quarter $0 0 2,000 4,000 6.000 8,000 10,000 12.000 14000 Year 23rd quarter Direct Labor-Hours ok t reset nces 2-b. Using the least-squares regression method, estimate the variable utilities cost per direct labor-hour and the total fixed utilities cost per quarter. Express these estimates in the form Y = a + bx. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) 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 formule. 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 Year 1: First Second Third Fourth Year 2: First Second Third Fourth Direct Tons Mined Labor-Hours 22,000 5,700 15,000 3,700 27,000 4,700 19,000 6,780 Utilities Cost $ 57,000 $ 52,000 $ 67,000 $ 82,000 25,000 32,000 37,000 35,000 10,700 9,700 8,700 11,000 $107.000 $112,000 $ 92,000 $127.000 2-a. Using direct labor-hours as the independent variable, prepare a scattergraph that plots direct labor-hours 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 direct labor-hours 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. Required information Year 1. 1st quarter S140,000 Year 1 - 2nd quarter $120,000 $100.000 Year 1.3rd Quarter 8580.000 Utilities Cost Year 1.4m quarter $60,000 $40,000 Year 2.15 quarter $20.000 Year 2-2nd quarter $0 0 2,000 4,000 6,000 8,000 10,000 12.000 14,000 Direct Labor-Hours Year 23rd quarter reset ven! 2 Required information $40,000 of 3 Year 2-16 quarter $20,000 Year 2nd Quarter $0 0 2,000 4,000 6.000 8,000 10,000 12.000 14000 Year 23rd quarter Direct Labor-Hours ok t reset nces 2-b. Using the least-squares regression method, estimate the variable utilities cost per direct labor-hour and the total fixed utilities cost per quarter. Express these estimates in the form Y = a + bx. (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)