The cost accountant for Bolagio Company used an Excel spreadsheet program to run ordinary least squares regression analysis on a set of cost data for its utility cost. Bolagio's cost driver for utility cost is machine hours. The following results were produced.

Intercept	2,490
X Variable	4.89

Required:

A. Construct the cost formula for Bolagio's utility cost using the results from the method of least squares.

Total utility cost	=	Fixed cost	+	Variable cost
	=	$	+	($ per hour X no. of machine hours)

B. Using the formula computed in (A), what is the estimated cost of utilities for May assuming that Bolagio will incur 110,000 machine hours? $