Quarter 1 $26,000 38,000 42,500 37,000 34,000 29,000 36,000 40,000 Note: For the following requirements, round the fixed cost to the nearest dollar, round the variable rates to three decimal places, and the R² to two decimal places. 2 3 4 5 6 7 Machine Hours 8 20,000 Power Cost 25,000 30,000 22,000 21,000 18,000 24,000 28,000 Required: 1. Prepare a scattergraph by plotting power costs against machine hours. Does the scattergraph show a linear relationship between machine hours and power cost? 2. Using the high and low points (i.e., the high-low method), compute a power cost formula. (Note: Round variable rate to three decimal places.) Total power cost = x + ($ X x Number of machine hours) 3. Use the method of least squares to compute a power cost formula. Evaluate the coefficient of determination. Variable rate (to two decimal places) per machine hour Fixed cost (to the nearest dollar) Coefficient of determination (R2) (to one decimal place). %