Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 6,000
Variable costs $ 13,200
Fixed costs 29,000
Mixed costs 18,440
Total costs $ 60,640

During October, the activity level was 8,800 units, and the total costs incurred were $68,500. Required: a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.

Answer is complete and correct.

October
Variable cost $19,360 selected answer correct
Fixed cost $29,000 selected answer correct
Mixed cost $20,140 selected answer correct

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.)

Answer is complete but not entirely correct.

Cost formula $14,772.00 selected answer incorrect + $0.61 selected answer correct per unit

I cant figure out the first part of b.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental financial accounting concepts

Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward

8th edition

978-007802536, 9780077648831, 0078025362, 77648838, 978-0078025365

More Books

Students also viewed these Accounting questions