A company wants to analyze its cost behavior.

It has determined that machine hours best explain the

company's utilities cost. The company's relevant range of activity varies from a low of 600 machine
hours to a high of 1,100 machine hours, with the following data being available for the first seven
months of the year:

Month Utilities Machine Hours

January ₱8,700 800

February 3,050 300
March 8,950 810
April 9,360 920
May 9,625 950
June 9,150 900
July 8,360 720

Required:

1. Using the high and low points method, develop the cost formula for the company’s utility costs.

2. Using the method of least squares, develop the cost formula for the company’s utility costs.