Please answer the below question ASAP for MBA 560 financial and managerial accounting.

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 use for predicting manufacturing overhead (MOH) costs.

The following information is available:

			MOH	MOH
	Manufacturing	Direct		Cost per	Cost per
	Overhead	Labor	Units	DL	Unit
Month	Costs	Hours	Produced	Hour	Produced
July . . . . . . . . . .	$475,000	25,500	3,640	$18.63	$130.49
August . . . . . . . .	$518,000	28,000	4,350	$18.50	$119.08
September . . . .	$469,000	22,000	4,260	$21.32	$110.09
October . . . . . . .	$460,000	22,800	3,420	$20.18	$134.50
November . . . . .	$586,000	31,000	5,800	$18.90	$101.03
December . . . . .	$450,000	22,200	3,280	$20.27	$137.20

Requirement 1. Determine if the manufacturing overhead costs are fixed, variable, or mixed?

Carmichael's manufacturing overhead appears to be a

fixed

mixed

variable

cost. If it were a

fixed

mixed

variable

cost, it would remain constant in total each month. If it were a

fixed

mixed

variable

cost, it would remain constant on a per unit (of activity) basis. Both

Carmichael's MOH per DL hour and MOH per unit

are fixed

vary

with volume.

Requirements

1.	Are manufacturing overhead costs fixed, variable, or mixed? Explain.
2.	Graph Carmichael Industries' manufacturing overhead costs against DL hours.
3.	Graph Carmichael Industries' manufacturing overhead costs against units produced.
4.	Do the data appear to be sound, or do you see any potential data problems? Explain.
5.	Use the high-low method to determine Carmichael Industries' manufacturing overhead cost equation using DL hours as the cost driver. Assume that management believes that all data is accurate and wants to include all of it in the analysis.
6.	Estimate manufacturing overhead costs if Carmichael Industries incurs 26,000 DL hours in January.