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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: Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth Tons Mined 21,000 15,000 26,000 18,000 24,000 31,000 36,000 34,000 Direct Labor- Hours 5,600 3,600 4,600 6,600 11,200 10,800 9,200 12,200 Utilities Cost $ 56,000 $ 51,000 $ 66,000 $ 81,000 $ 130,000 $ 135,000 $ 91,000 $ 132,000

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: Quarter Year 1: First Second Third Fourth Year 2: First Second Third Fourth Tons Mined 21,000 15,000 26,000 18,000 24,000 31,000 36,000 34,000 Direct Labor- Hours 5,600 3,600 4,600 6,600 11,200 10,800 9,200 12,200 Utilities Cost $ 56,000 $ 51,000 $ 66,000 $ 81,000 $ 130,000 $ 135,000 $ 91,000 $ 132,000

MATLAB: An Introduction with Applications
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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: 140000 120000 100000 Utilities Cost 80000 Quarter Year 1: 60000 40000 First Second Third Fourth Year 2: 20000 Y= First Second Third Fourth Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost on the vertical axis. Instructions: 1. On the graph below, use the point tool (Year 1-1st quarter) to plot tons mined on the horizontal axis and utilities cost on the Vertical axis. 2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. 0 Tons Mined 10000 20000 21,000 15,000 26,000 18,000 24,000 31,000 36,000 34,000 + 30000 Direct Labor- Hours 5,600 3,600 4,600 6,600 40000 11,200 10,800 9,200 12,200 Tons Mined Utilities Cost 50000 $ 56,000 $ 51,000 $ 66,000 $ 81,000 60000 $ 130,000 $ 135,000 $91,000 $ 132,000 Tools Year 1-1st qu Year 1-2nd qi Year 1-3rd qu Year 1-4th qu 1-b. 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.) Year 2- 1st qu Year 2-2nd qi
Transcribed Image Text: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: 140000 120000 100000 Utilities Cost 80000 Quarter Year 1: 60000 40000 First Second Third Fourth Year 2: 20000 Y= First Second Third Fourth Required: 1-a. Using tons mined as the independent variable, prepare a scattergraph that plots tons mined on the horizontal axis and utilities cost on the vertical axis. Instructions: 1. On the graph below, use the point tool (Year 1-1st quarter) to plot tons mined on the horizontal axis and utilities cost on the Vertical axis. 2. Repeat the same process for the plotter tools (Year 1-2nd quarter to Year 2-4th quarter). 3. To enter exact coordinates, click on the point and enter the values of x and y. 4. To remove a point from the graph, click on the point and select delete option. 0 Tons Mined 10000 20000 21,000 15,000 26,000 18,000 24,000 31,000 36,000 34,000 + 30000 Direct Labor- Hours 5,600 3,600 4,600 6,600 40000 11,200 10,800 9,200 12,200 Tons Mined Utilities Cost 50000 $ 56,000 $ 51,000 $ 66,000 $ 81,000 60000 $ 130,000 $ 135,000 $91,000 $ 132,000 Tools Year 1-1st qu Year 1-2nd qi Year 1-3rd qu Year 1-4th qu 1-b. 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.) Year 2- 1st qu Year 2-2nd qi
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