Question
A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixed costs, are a
A department of Delta Company incurred the following costs for the month of June. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:
Activity level in units | 10,000 |
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Variable costs | $ 20,000 |
Fixed costs | 60,000 |
Mixed costs | 40,000 |
Total costs | $ 120,000 |
During July, the activity level was 16,000 units, and the total costs incurred were $141,000.
Required:
Calculate the variable costs, fixed costs, and mixed costs incurred during July.
Use the highlow method to calculate the cost formula for mixed cost.
Calculate the variable costs, fixed costs, and mixed costs incurred during July.
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Use the highlow method to calculate the cost formula for mixed cost. Note: Do not round intermediate calculations. Round your answers to 2 decimal places.
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