Can i get help with this homework? Determining Fixed vs$.$ Variable Cost Components Using Excel $($Diagnostic Analytics$)$

Genessee Industries introduced a new product last year $(6582-$D$).$ Although it was very popular, it wasn$$t very profitable. Management has asked you to provide them with information to help them set a sales price that will provide them with a monthly gross profit of $$7,500.($Last year$$s sales price was $$75$ per unit.$)$

You know that the direct costs per unit are $$25$ for direct materials and $$5$ for direct labor. You are given information about last year$$s monthly production levels and manufacturing overhead costs $($indirect materials, indirect labor, and other$).$ That information is included in the file linked here. $$

$$ Units Indirect$$ Indirect$$ Other$$Produced$$Materials$$Labor$$Overhead$$ January $1,000$$$5,150\mathrm{.}00$$$21,750\mathrm{.}00$$$31,510\mathrm{.}00$ February $1,2005,756\mathrm{.}0022,120\mathrm{.}0033,391\mathrm{.}00$ March $1,1505,558\mathrm{.}5022,180\mathrm{.}0031,903\mathrm{.}00$ April $9805,097\mathrm{.}0021,535\mathrm{.}0030,995\mathrm{.}20$ May $1,0505,354\mathrm{.}0021,797\mathrm{.}5032,572\mathrm{.}50$ June $1,1505,558\mathrm{.}5022,065\mathrm{.}0032,332\mathrm{.}00$ July $1,0905,388\mathrm{.}5022,108\mathrm{.}0032,126\mathrm{.}10$ August $1,1705,675\mathrm{.}6021,993\mathrm{.}4033,927\mathrm{.}40$ September $9254,957\mathrm{.}7521,493\mathrm{.}7530,066\mathrm{.}50$ October $9805,097\mathrm{.}0021,662\mathrm{.}4030,485\mathrm{.}00$ November $1,0255,224\mathrm{.}7521,773\mathrm{.}7532,048\mathrm{.}75$ December $8254,686\mathrm{.}2521,418\mathrm{.}7529,291\mathrm{.}25$

Required

Note:$$Round all answers to two decimals.

a$.$ Determine the cost formula for $6582-$D$.$ Use Excel$$s regression analysis tool to develop a cost$-$estimating equation for total fixed and variable manufacturing costs. Use the regression tool three times $($once for indirect materials, once for indirect labor, and once for other overhead$).$ Use the information from each analysis, along with the direct cost information to estimate the cost equation.

Hint:Click on $95\%$ confidence level box and check the box to add a Line fit plot for each indirect cost element to show the relationship in chart form.

Hint:You may need to change the minimum bound on the horizontal axis to $700$ to see the line clearly on each chart.

Manufacturing Overhead CostsVariable Cost per UnitTotal Fixed CostDirect materialsAnswer $1$

Answer $2$

Direct laborAnswer $3$

Answer $4$

Indirect materialsAnswer $5$

Answer $6$

Indirect laborAnswer $7$

Answer $8$

Other overheadAnswer $9$

Answer $10$

Total

Cost$-$estimating equation: Y $=$

$+$ $

X

b$.$ Use the prior year data to create a graph of the various overhead costs by month. Create a Combo chart as follows.Hint:Under the Insert tab, click on Insert Combo chart.

$1.$ The primary vertical axis in dollars, and the secondary vertical axis is units of production. Hint: Click the Secondary axis box for units produced.

$2.$ The horizontal axis is Months.

$3.$ Units produced should be a Clustered column type; the overhead cost elements should be Line type.

$4.$ Describe the trend in the overhead components based on a review of your chart.

Answer $13$Indirect materials, indirect labor, and other overhead costs are relatively stable over the year.Indirect materials and indirect labor costs are relatively stable, whereas other overhead showed more fluctuations over the year.Other overhead costs remained relatively stable, whereas indirect materials and indirect labor costs showed more fluctuations over the year.All components of overhead costs showed an increasing trend in costs over the year.All components of overhead costs showed a decreasing trend in costs over the year.

c$.$ Use Excel$$s Goal Seek tool to determine the sales price required to meet the $$7,500$ gross profit goal. Management believes monthly sales will average $1,500$ next year. Assume the company will not maintain any inventory of finished goods. Hint: In a schedule in Excel, enter number of units, variable manufacturing cost per unit and total fixed costs, and a formula for gross profit. Use the Goal Seek tool to find the sales price. Goal seek is found under the Data tab, and under What$-$if Analysis.

d$.$In what areas would Goal Seek help management in decision$-$making?