Only typed solution The following data have been extracted from the records of Puzzle Incorporated: February AugustProduction level, in units 9,400 20, 680 Variable costs $ 22, 560 $ ? question mark Fixed costs ?question mark 39, 300 Mixed costs 19,612 ? question mark Total costs $ 81, 472 $ 125, 238 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 15,040 units. Identify the twokey cost behavior assumptions ade in the calculation of your answer to part c.

Variable cost is a type of cost that is directly proportionate to the level of production. Fixed…

The following data have been extracted from the records of Puzzle Incorporated: February August Production level, in units 9,400 20,680 Variable costs $ 22,560 $ ? question mark Fixed costs ? question mark 39,300 Mixed costs 19,612 ? question mark Total costs $ 81, 472 S 125, 238 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 15, 040 units. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.

The following data have been extracted from the records of Puzzle Incorporated: February August Production level, in units 9,400 20,680 Variable costs $ 22,560 $ ? question mark Fixed costs ? question mark 39,300 Mixed costs 19,612 ? question mark Total costs $ 81, 472 S 125, 238 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 15, 040 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

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Manufacturing Costs

Manufacturing cost is the total cost of procuring or producing a product. In other words, the manufacturing cost is the cost that an individual or business owner undertakes for the manufacturing of goods.

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The following data have been extracted from the records of Puzzle Incorporated: February August
Production level, in units 9,400 20, 680 Variable costs $ 22, 560 $ ? question mark Fixed costs ?
question mark 39, 300 Mixed costs 19,612 ? question mark Total costs $ 81, 472 $ 125, 238 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 15,040 units. Identify the two
key cost behavior assumptions ade in the calculation of your answer to part c.

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