Quarter: Tons Mixed Direct Labor Hours Utilities Cost Year 1: First 15000 500

Quarter: Tons Mixed Direct Labor Hours Utilities Cost
Year 1:
First 15000 5000 $50000
Second 11000 3000 $45000
Third 21000 4000 $60000
Fourth 12000 6000 $75000
YEar 2:
First 18000 10000 $100000
Second 25000 9000 $105000
Third 30000 8000 $85000
Fourth 28000 11000 $120000 Using tons mined as the independent x variable:
1.Determine a cost formula for utilities cost using the least squares regression method.
2. Prepare a scattergraph and plot the tons mined and utilities cost. (place cost on the vertical axis and tons mined on the horizontal axis) Fit a straight line
to the plotted points using the cost formula determined by (1) 3. Using the direct labor hours as the independent (x) variable repeat the computations in (1) and (2) above
4.WOuld you recommend that the company use tons mined or direct labor hours as a base for planning utilities cost?