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.
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text: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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