The following data have been extracted from the records of Puzzle Incorporated: Production level, in units Variable costs Fixed costs Mixed costs Total costs Required: February 8,600 $ 19, 780 ? 16, 738 $ 68, 218 August 13, 760 $? 31,700 ? $86,949 a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 10,893 units. d. 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: Production level, in units Variable costs Fixed costs Mixed costs Total costs Required: February 8,600 $ 19, 780 ? 16, 738 $ 68, 218 August 13, 760 $? 31,700 ? $86,949 a. Calculate the missing costs. b. Calculate the cost formula for mixed cost using the high-low method. c. Calculate the total cost that would be incurred for the production of 10,893 units. d. 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:
Production level, in units
Variable costs
Fixed costs
Mixed costs
Total costs
Required:
February
8,600
$ 19,780
16,738
$ 68,218
August
13,760
$ ?
31,700
$ 86,949
a. Calculate the missing costs.
b. Calculate the cost formula for mixed cost using the high-low method.
c. Calculate the total cost that would be incurred for the production of 10,893 units.
d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.
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