ACCT225, Group In-class Exercise No. 1 marks (same mark for all group members) The class divides into 2 groups of almost equal numbers of students. You have until the end of the class time to answer the questions below AND upload them to SafeAssign on BlackBoard. Only 1 upload per group. Show the names and ID numbers of students on the assignment. It is probably easiest if you solve the questions on paper, photograph them, and upload the photos to BlackBoard. Note: If your calculations and answers use the model solutions you get O marks. If groups copy from each other both groups get O marks, Good luck! Angora Wraps of Pendleton, Oregon, makes fine sweaters out of pure angora wool. The business is seasonal, with the largest demand during the fall, the winter, and Christmas holidays. The company must increase production each summer to meet estimated demand. The company has been analyzing its costs to determine which costs are fixed and variable for planning purposes. Below are data for the company's activity and direct labor costs over the last year. Number of Paid Days Thousands of Units Produced 98 76 75 80 85 102 52 136 138 132 86 56 Month January February March April May June July August September October November December 20 20 21 22 22 Direct Labor Cost $14,162 $12.994 $15,184 $15,038 $15,768 $15,330 $13.724 $14.162 $15.476 $15.476 $12.972 $14,074 21 19 21 22 23 18 21 The number of workdays varies from month to month due to the number of weekdays, holi- days, and days of vacation in the month. The paid days include paid vacations (in July) and paid holidays (in November and December). The number of units produced in a month varies depend- ing on demand and the number of workdays in the month. The company has eight workers who are classified as direct labor. Required: 1. Plot the direct labor cost and units produced on a scattergraph. (Place cost on the vertical axis and units produced on the horizontal axis.) 2. Plot the direct labor cost and number of paid days on a scattergraph. (Place cost on the vertical axis and the number of paid days on the horizontal axis.) 3. Which measure of actievity--number of units produced or paid days-should be used as the activity base for explaining direct labor cost? Explain. Marks: Q1 and Q2 carry one mark each. 23 carries three marks. Make sure the explanation for Q3 is complete