ScattergraphMethod.Castilla Company produces smartphones. Management wants to estimate the cost of production equipment used to produce smartphones. The company reportedthe following monthly cost data related to production equipment.Use the five steps of the scattergraph method to estimate the total fixed cost per month and the variable cost per machine hour. State your results in the cost equation form Y =f+vX by filling in the dollar amounts forfandv.

1. What would Castilla Company's estimated costs be if it used 50,000 machine hours next month?
2. What would Castilla Company's estimated costs be if it used 15,000 machine hours next month?

A. The five steps are shown below. Step 1: Fill in the columns below to plot the data points in the graph that follows. (Points will automatically appear in the graph after you enter the data points below). Reporting Answer for Answer for Period Total Machine Total Costs Machine (Month) Costs Hours is : Hours is: January 5 920,000 45.000 Correct Correct February 600.000 25.000 Correct Correct March 500.000 20.000 Correct Correct April 1.100.000 90.000 Correct Correct May 1.140.000 95.000 Correct Correct June 620.000 30.000 Correct Correct July 880.000 38.000 Correct Correct August 910.000 48.000 Correct Correct September 1.060,000 78.000 Correct Correct October 960.000 51.000 Correct Correct November 1.400.000 96.000 Correct Correct December 980.000 54.000 Correct CorrectScattergraph Method (continued) amounts to the nearest dollar. A. Step 3: Estimate the total fixed costs (f). Assume your estimate for total fixed costs is $450,000. Step 4: Calculate the variable cost per unit ("); units are measured in machine hours. From part a above, assume your estimate for total fixed costs is $450,000, and that your line in step 2 went through the data point with total costs of $1,060,000 and 78,000 machine hours (September data point). Calculate the variable cost per unit rounded to the nearest cent and input your answer below. Variable cost per unit (rounded to the nearest cent) Step 5: State the results in equation form Y = f + vX. Y = + X b. Using the equation from above, substitute machine hours for X and solve for Y: X hours ) Y C. Using the equation from part a, substitute machine hours for X and solve for Y: Y + X hours ) Y