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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

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 $

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