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 Variable costs Fixed costs Mixed costs 4,000 $ 8,000 32,000 19,700 Total costs $ 59,700 During July, the activity level was 8,400 units, and the total costs incurred were $70,000. Required: a. Calculate the variable costs, fixed costs, and mixed costs incurred during July. b. Use the high-low method to calculate the cost formula for mixed cost. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the variable costs, fixed costs, and mixed costs incurred during July. July Variable cost Fixed cost Mixed cost
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 Variable costs Fixed costs Mixed costs 4,000 $ 8,000 32,000 19,700 Total costs $ 59,700 During July, the activity level was 8,400 units, and the total costs incurred were $70,000. Required: a. Calculate the variable costs, fixed costs, and mixed costs incurred during July. b. Use the high-low method to calculate the cost formula for mixed cost. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the variable costs, fixed costs, and mixed costs incurred during July. July Variable cost Fixed cost Mixed cost
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Ashvinbhai
Transcribed Image Text: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
Variable costs
Fixed costs
Mixed costs
4,000
$ 8,000
32,000
19,700
Total costs
$ 59,700
During July, the activity level was 8,400 units, and the total costs incurred were $70,000.
Required:
a. Calculate the variable costs, fixed costs, and mixed costs incurred during July.
b. Use the high-low method to calculate the cost formula for mixed cost.
Complete this question by entering your answers in the tabs below.
Required A Required B
Calculate the variable costs, fixed costs, and mixed costs incurred during July.
July
Variable cost
Fixed cost
Mixed cost
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