The controller of Pharoah Industries has collected the following monthly expense data for analyzing the cost behavior of electricity costs.

		Total Electricity Costs				Total Machine Hours
January			$1,910				300
February			3,000				330
March			3,380				480
April			4,610				695
May			3,190				500
June			4,960				790
July			4,150				640
August			3,930				540
September			5,090				680
October			4,230				620
November			3,280				330
December			6,170				810

(a) Determine the fixed- and variable-cost components using regression analysis (We recommend the use of Excel.) (Round fixed cost to 3 decimal places e.g. 1.252 and variable cost to 5 decimal places e.g. 1.25125.)

Fixed costs		$
Variable-cost		$

(c) What electricity cost does the cost equation estimate for a level of activity of 480 machine hours? (Round answer to 2 decimal places e.g. 1.25.)

Electricity costs

$

By what amount does this differ from Marchs observed cost for 480 machine hours? (Round answer to 2 decimal places e.g. 1.25.)

Amount differ

$