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Homework answers / question archive / A department of Alpha Co
A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:
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Activity level in units |
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5,000 |
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Variable costs |
$ |
8,750 |
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Fixed costs |
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31,000 |
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Mixed costs |
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23,400 |
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Total costs |
$ |
63,150 |
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During October the activity level was 8,000 units, and the total costs incurred were $69,500. |
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Required: |
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a. |
Calculate the variable costs, fixed costs, and mixed costs incurred during October. (Do not round intermediate calculations.) |
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b. |
Use the high–low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round your answers to 2 decimal places.) |
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