Part four during the first two years of operations, Big Als overhead costs have fluctuated from month to month. Although overhead appears to go up and down according to the number of pizzas produced each month, the accounting manager has noticed that this is not always the case. For example, in the fourteenth month of operations, the manufacturing facility was closed for almost 10 days because of severe weather, and production for the month was very low. However, overhead costs were only about 25 percent lower than those incurred in the previous month. In an effort to estimate overhead costs in year 3, the manager has collected the following information for the past 24 months of operation and has asked for your assistance in analyzing the data.

Month	Pizzas Produced	Total Overhead Costs
1	25,784	17,200
2	25,897	17,300
3	25,750	17,450
4	26,352	17,600
5	27,567	17,950
6	28,492	18,125
7	27,398	17,900
8	28,112	17,955
9	29,499	18,507
10	28,879	18,295
11	29,344	18,325
12	29,399	18,550
13	30,879	19,825
14	15,167	14,800
15	28,379	18,732
16	29,765	19,832
17	30,334	19,965
18	30,761	19,786
19	31,300	20,359
20	31,804	20,149
21	31,795	20,508
22	32,016	20,489
23	32,379	21,166
24	32,675	20,852

Required: A. Do the data presents any special problems that might impact the accuracy of using either the high /low method or regression analysis to predict overhead costs. What suggestions would you make to the company accountant before analyzing the data? B. Analyze the data (both with and without month 14) using the high /low method. Estimate the fixed and variable components of total overhead costs. C. Analyze the data (both with and without month 14) using regression analysis. Estimate the fixed and variable components of total overhead costs. D. Should the accounting manager consider using an independent variable other than the number of pizzas produced to predict overhead costs? What suggestions do you have? E. During year 3, Big Als estimates January production of 33,000 pizzas. Based on the expected production of 33,000 pizzas and the results in parts B and C, how much overhead would you estimate that Big Als will incur in January?