question 4 and 5 please

This assignment will show you how to use cost behavior analysis to find out about nonfinancial information without even looking at the manufacturing process. Remember, the numbers tell a story And you can find out that story just by taking a close look at the numbers. Below is a chart showing information on monthly production levels and total cost (mixed costs) for Carolyn's Confectionary Creations for the year ended December 31, 2014. The company produces chocolates and candies, doing their part to satisfy America's sweet tooth and to further the cause of obesity and diabetes in America. The product range includes individually wrapped fun size candies to gift boxes of chocolate, and everything else in between. MONTH UNITS PRODUCED TOTAL OVERHEAD COST JAN FEB MAR 180,000 650,000 250,000 550,000 350,000 270,000 260,000 220,000 375,000 770,000 210,000 550,000 400,000 1,200,000 50,000 970,000 490,000 460,000 55,000 410,000 525,000 1,020,000 465,000 995,000 APR MAY JUN JUL AUG SEP NOV DEC With this information, you are tasked with completing the following: 1. Which costing method does this company likely use, Job Order Costing or Process Costing? xplain. Would this company potentially benefit from using ABC, and why? Prepare a scattergraph on a sheet of graph paper (If you don't have any available, go to printfreegraphpaper.com and select "Engineering Graph Paper" as the type of graph paper 2. to print.) Draw a regression line between the points. What do you estimate total fixed costs to be? Using the High-Low Method, calculate variable cost per unit as well as fixed costs. Using the Regression Analysis function in Excel (you may need to install the Analysis Tool Pak), find the following: 3. 4. a. b. c. Total Fixed Costs Variable Cost per Unit What percentage of variable costs are directly related to how much is produced 5. Answer the following (think about it, and be creative) Production in April and December were the same, but overhead was higher in December. Consider what makes up manufacturing overhead. What is a possible reason that manufacturing overhead was greater in December? Why do you think production was so much higher in February, April and December than in other months? a. b. c. We know that variable costs are not entirely related to how much is produced. Again, think about what makes up overhead and what this company manufactures. What might be another factor involved in overhead? (HINT: Look at the month in which the overhead is the highest.)