Question

Cost driver activity and cost for Oct and Nov, respectively are shown below. The mixed costs...

Cost driver activity and cost for Oct and Nov, respectively are shown below. The mixed costs for Nov were
cost driver 5,000 10,000
Variable cost $10,000 ?
Fixed cost 30,000 ?
Mixed cost 20,000 ?
Total cost 60,000 75,000

Group of answer choices

$20,000

$25,000

$40,000

$35,000

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Answer #1

Variable cost per unit:

= $10,000 / 5,000

= $2

Fixed cost remains the same.

Mixed cost = Total cost - Variable cost - Fixed cost

= $75,000 - ($2 X 10,000) - $30,000

= $25,000

2nd option

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