The controller of Brokaw Production has collected the following monthly cost data for analyzing the behavior of utility costs.

		Total Utility Costs				Total Machine Hours
January			$3,200				400
February			4,700				550
March			4,000				500
April			2,100				790
May			3,600				450
June			5,300				700
July			5,500				690
August			5,100				620
September			7,400				880
October			4,600				610
November			3,000				350
December			6,700				820

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Determine the fixed costs and unit variable costs using regression analysis. (We recommend the use of Excel.) (Round fixed cost to 0 decimal places e.g. 1,252 and variable cost to 4 decimal places e.g. 1.2512.)

Fixed costs		$enter a dollar amount rounded to 0 decimal places
Unit variable costs		$enter a dollar amount per machine hour rounded to 4 decimal places	/machine hour

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What utility cost does the cost equation estimate for a level of activity of 500 machine hours? (Round answer to 2 decimal places e.g. 1,250.25.)

Utility costs

$enter the utility cost in dollars rounded to 2 decimal places

By what amount does this differ from Marchs observed cost for 500 machine hours? (Round answer to 2 decimal places e.g. 1.25.)

Amount differ

$enter a dollar amount rounded to 2 decimal places

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What utility cost does the cost equation estimate for a level of activity of 700 machine hours? (Round answer to 2 decimal places e.g. 1,250.25.)

Utility costs

$enter the utility cost in dollars rounded to 2 decimal places

By what estimate does this differ from Junes observed cost for 700 machine hours? (Round answer to 2 decimal places e.g. 1.25.)

Amount differ

$enter a dollar amount rounded to 2 decimal places