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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 4,000
Variable costs $ 8,200
Fixed costs 32,000
Mixed costs 14,710
Total costs $ 54,910

During July, the activity level was 9,800 units, and the total costs incurred were $68,000.

Required:

  1. Calculate the variable costs, fixed costs, and mixed costs incurred during July.
  2. Use the highlow method to calculate the cost formula for mixed cost.

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