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 Utilities Quarter Tom Mined Hours Cost Year 13 First 30,00 6,500 5.65,000 Second 19,000 4,500 $ 60,000 Third 35,000 5,500 $ 25,000 Fourth 27,000 7.500 $ 90,000 Year 2 First 33,000 13,000 5115,000 Second 40,000 13,500 $120,000 Third 45,000 11,000 $100,000 Fourth 14,000 $135,000 Required: 1. Using the least squares regression method estimate the variable litis cost per ton mined and the total fixed utilities cost per quarter Express these estimates in the form Ya+bx (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount) $ 22.000 $ 171 12 3 $ 4 3 % 5 LO 7 00 I w W E R T Y C ! 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. Utilities Cost Quarter Year 1 First Second Third Fourth Year 21 First Second Third Fourth Tons ined 30,000 19,000 35.000 27,690 5,500 7.500 $ 65,000 $ 60,000 $ 75,000 $ 90,000 33,000 40.000 45,000 13,000 13,500 11,000 14.000 $115,000 $120,000 $100,000 $135,000 2 Using the least squares regression method, estimate the variable utilities cost per direct labor hour and the total foed utilities 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.) Answer is not complete. 32.902