Hello, I have another 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: 4,000 Variable Costs $8,600 Fixed costs 31,000 Mixed costs 17,050 Total costs $56,650 During October, the activity level was 9,000 units, and the total costs were $68,500. I got the following for part A. A. Variable cost: $19,350 Fixed cost: $31,000 Mixed cost: $18,150 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: ? + $0.22 per unit. My question is on the cost formula in part B. Thanks.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
Hello,
I have another 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: 4,000
Variable Costs $8,600
Fixed costs 31,000
Mixed costs 17,050
Total costs $56,650
During October, the activity level was 9,000 units, and the total costs were $68,500.
I got the following for part A.
A. Variable cost: $19,350
Fixed cost: $31,000
Mixed cost: $18,150
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: ?
+ $0.22 per unit.
My question is on the cost formula in part B.
Thanks.
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