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	$	9,750
Fixed costs		28,000
Mixed costs		21,830
Total costs	$	59,580

During October the activity level was 8,600 units, and the total costs incurred were $68,500.

Required:

a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.

	October
Variable cost
Fixed cost
Mixed cost

b. Use the highlow method to calculate the cost formula for mixed cost.

Cost formula

+

per unit