2.

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		3,500
Variable costs	$	7,175
Fixed costs		32,000
Mixed costs		15,950
Total costs	$	55,125

During October the activity level was 9,000 units, and the total costs incurred were $68,000.

Required:

a.

Calculate the variable costs, fixed costs, and mixed costs incurred during October. (Do not round intermediate calculations.)

October:

Variable Cost - $__________

Fixed Cost - $__________

Mixed Cost - $_________

b.	Use the highlow 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