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QUESTION

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...

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 5,500

Variable costs$11,000

Fixed costs 32,000

Mixed costs 19,900

Total costs$62,900

During October the activity level was 7,800 units, and the total costs incurred were $69,500.

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. (Do not round intermediate calculations and round your answers to 2 decimal places.)

Cost formula                   +                      per unit

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