Extracted text: Requlred Informatlon The Hard Rock MIining Company Is developing cost formulas for management planning and decision-makıng purposes. The company's cost analyst has concluded that utilitles 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 Labor- utilities Quarter Tons Mined Hours Cost Year 1: 5,700 3,700 4,700 6,700 $ 57,000 $ 52,000 $ 67,000 $ 82,000 First Second Third Fourth 22, 000 15,000 27,000 19,000 Year 2: First 25,000 32,e00 37,000 35,000 11,400 11,100 9,400 12,400 $ 107,000 $ 112,000 $ 92,000 $ 127,000 Second Third Fourth Requlred: 1. Using the least-squares regression method, estimate the varlable utilities cost per ton mined and the total fixed utilitlies cost per quarter. Express these estimates in the form Y = a + bX. (Round the Varlable cost per unit to 2 decimal places and Flxed Cost to the nearest whole dollar amount.) Y =
Extracted text: Requlred Informatlon The Hard Rock MIining 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 Labor- utilities Quarter Tons Mined Hours Cost Year 1: $ 57,000 $ 52,000 $ 67,000 $ 82,000 First 22,000 15,000 27,000 19,000 5,700 3,700 4,700 6,700 Second Third Fourth Year 2: First 25,000 32, eee 37,000 35,000 11,400 11,100 9,400 12,400 $ 107,000 $ 112,000 $ 92,000 $ 127,000 Second Third Fourth 2. Using the least-squares regresslon method, estimate the varlable utlitles cost per direct labor-hour and the total fixed utilities cost per quarter. Express these estimates In the form Y = a + bx. (Round the Varlable cost to 2 decimal places and Flxed Cost to the nearest whole dollar amount.) Y%D