Carmichael Industries is in the process of analyzing its manufacturing overhead costs. Carmichael Industries is not sure if the number of units produced or the number of direct labor (DL) hours is the best cost driver to be used for predicting manufacturing overhead (MOH) costs.

The following information is available:

Month	Manufacturing Overhead Cost	Direct Labor Cost	Units Produced	MOH Cost per DCL Hour	MOH Cost per Unit Produced
July	$463,000	23,100	3,620	$20.04	$127.90
August	513,000	26,500	4,300	19.36	119.30
September	435,000	20,000	4,230	21.75	102.84
October	450,000	21,400	3,380	21.03	133.14
November	562,000	30,000	5,790	18.73	97.06
December	438,000	20,500	3,300	21.37	132.73

Here is the list of tasks that you need to do in this assessment:

1. Are manufacturing overhead costs fixed, variable, or mixed? Explain.

2. Graph Carmichael Industries