Homework Help is Here – Start Your Trial Now!
Business
Accounting
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 + $ 0.29 per unit

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 + $ 0.29 per unit

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

I need help with part b please, i have part a done 

Problem 12-19 (Algo) High-low method LO 6 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 Variable costs Fixed costs Mixed costs Total costs During October, the activity level was 8,800 units, and the total costs incurred were $69,500. Required: a. Calculate the variable costs, fixed costs, and mixed costs incurred during October. Variable cost Fixed cost Mixed cost 5,000 $ 9,500 32,000 19,680 $61,180 October $ 16,720 $ 32,000 $ 20,780
Transcribed Image Text:Problem 12-19 (Algo) High-low method LO 6 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 Variable costs Fixed costs Mixed costs Total costs During October, the activity level was 8,800 units, and the total costs incurred were $69,500. Required: a. Calculate the variable costs, fixed costs, and mixed costs incurred during October. Variable cost Fixed cost Mixed cost 5,000 $ 9,500 32,000 19,680 $61,180 October $ 16,720 $ 32,000 $ 20,780
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 + $ 0.29 per unit
Transcribed Image Text: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 + $ 0.29 per unit
Expert Solution
Step 1

A mixed cost is a type of cost that includes the component of both fixed costs and variable costs. In other words, the costs that include some variable costs and some fixed costs are termed mixed costs. 

trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Cost estimation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS