The following data have been extracted from the records of Puzzle Incorporated: February August Production level, in units 9,200 17,480 Variable costs $ 23,920 $ ?question mark Fixed costs ?question mark 31,100 Mixed costs 23,412 ?question mark Total costs $ 78,432 $ 115,361 Required: Calculate the missing costs. Calculate the cost formula for mixed cost using the high–low method. Calculate the total cost that would be incurred for the production of 12,211 units. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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The following data have been extracted from the records of Puzzle Incorporated: February August Production level, in units 9,200 17,480 Variable costs $ 23,920 $ ?question mark Fixed costs ?question mark 31,100 Mixed costs 23,412 ?question mark Total costs $ 78,432 $ 115,361 Required: Calculate the missing costs. Calculate the cost formula for mixed cost using the high–low method. Calculate the total cost that would be incurred for the production of 12,211 units. Identify the two key cost behavior assumptions made in the calculation of your answer to part c. 

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