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