Wythe Industries is in the process of analyzing its manufacturing overhead costs. Wythe 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:

Requirements
1. Are manufacturing overhead costs fixed, variable, or mixed? Explain.
2. Graph Wythe Industries' manufacturing overhead costs against DL hours.
3. Graph Wythe 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 Wythe Industries' manufacturing overhead cost equation using DL hours as the cost driver. Assume that management believes all the data to be accurate and wants to include all of it in the analysis.
6. Estimate manufacturing overhead costs if Wythe Industries incurs 23,000 DL hours in January.

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Manufacturing Direct Labor Units Month July August September October November.. December Overhead Costs $470,000 $517,000 $428,000 $453,000 $557,000 $439,000 Hours Produced 22,800 26,200 19,000 21,800 29,000 19,500 3,630 4,340 4,190 3,420 5,770 3,260 MOH Cost per DL Hour $20.61 $19.73 $22.53 $20.78 $19.21 $22.51 MOH Cost per Unit Produced S129.48 S119.12 S102.15 $132.46 $ 96.53 S134.66