The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees; she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following Information: Utilities Cost Quarter Year 11 First Second Third Fourth Year 2: First Second Third Fourth Direct Tons Mined Labor-Hours 32,000 6,700 20,000 4,700 37,000 5,700 29,000 7.700 $ 67,000 $ 62,000 $ 77,000 $ 92,000 35,000 42,000 47,000 45,000 13,400 14,100 11,400 14,400 $117,000 $122,000 $102,000 $137,000 2. Using the least-squares regression method, estimate the variable utilities cost per direct labor-hour and the total fixed utilities cost Der quarter. Express these estimates in the form Y = a +bX (Round the Variable cost to 2 decimal places and Fixed Cost to the nearest whole dollar amount.) Ya Required information The Hard Rock Mining Company is developing cost formulas for management planning and decision-making purposes. The company's cost analyst has concluded that utilities cost is a mixed cost, and he is attempting to find a base that correlates with the cost. The controller has suggested that tons mined might be a good base to use in developing a cost formula. The production superintendent disagrees, she thinks that direct labor-hours would be a better base. The cost analyst has decided to try both bases and has assembled the following information: Direct Tons Mined Labor-Hours Utilities Cost Quarter Year 1: Pirst Second Third Fourth Year 2 First Second Third Fourth 32,000 20,000 37,000 29,000 6,700 4,700 5,700 7,700 $ 67,000 $ 62,000 $ 77,000 $ 92,000 $117,000 $122,000 $102,000 $137,000 35,000 42.000 47,000 45,000 13,400 14,100 11,400 14,400 Required: 1. Using the least-squares regression method, estimate the variable utilities cost per ton mined and the total fixed utilities cost per quarter. Express these estimates in the form Y = a +bX. (Round the Variable cost per unit to 2 decimal places and Fixed Cost to the nearest whole dollar amount.)