High-low method 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:
Activity level in units | 5,000 |
Variable costs | $10,000 |
Fixed costs | 30,000 |
Mixed costs | 20,000 |
Total costs | $60,000 |
During October the activity level was 8,000 units, and the total costs incurred were $70,500.
Required:
a.Calculate the variable costs, fixed costs, and mixed costs incurred during October.
b. Use the high-low method to calculate the cost formula for mixed cost.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.