Question 1 - Selection of an activity base Fantastic Sweepers of New England manufactures replacement rotary sweeper brooms for large sweeper trucks that clear leaves and snow from city streets. The business is highly seasonal, with the largest demand during and just preceding the fall and winter months. Because there are so many different kinds of sweeper brooms used by its customers, Fantastic Sweepers makes all of its brooms to order. The company has been analyzing its overhead accounts to determine the fixed and variable components for planning purposes. Below are data for the company's janitorial labor costs over the last nine months. Number of Units Produced Number of Janitorial Workdays 115 109 102 January February March April May June July August September Janitorial Labor Cost $3,840 $3,648 $4,128 $3,456 $4,320 $4,032 $2,784 $2,688 $3,840 69 108 The number of workdays varies from month to month due to the number of weekdays and holidays, as well as vacation days and sick leave taken by the workers in the month. The number of units produced in a month varles depending on demand and the number of workdays in the month. There are two janitors who each work an eight-hour shift each workday. They each can take up to ten days of pald sick leave every year. Their wages during their sick leave and paid vacation are charged to miscellaneous overhead rather than to the Janitorial labor cost account. Required: Prepare a scatterplot using the Janitorial labor cost and number of units produced. Prepare a scatterplot using the janitorial labor cost and number of Janitorial workdays Which measure of activity - number of units produced or janitorial workdays - should be used as the activity base for explaining janitorial labor cost? Briefly explain your reason for choosing the measure