Question - 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 3,500
Variable costs $6,475
Fixed costs 31,000
Mixed costs 20,430
Total costs $57,905
During October the activity level was 8,200 units, and the total costs incurred were $68,000.
a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.
Variable Cost $15,170
Fixed Cost 31,000
Mixed 21,830
b. Use the high-low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round your answers to 2 decimal places.)
Cost Formula __________ + ___________ per unit