I need help with part b please, i have part a done Problem 12-19 (Algo) High-low method LO 6A department of Alpha Co. incurred the following costs for the month of September. Variable costs, and the variable portion of mixedcosts, are a function of the number of units of activity:Activity level in unitsVariable costsFixed costsMixed costsTotal costsDuring October, the activity level was 8,800 units, and the total costs incurred were $69,500.Required:a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.Variable costFixed costMixed cost5,000$ 9,50032,00019,680$61,180October$ 16,720$ 32,000$ 20,780 b. Use the high-low method to calculate the cost formula for mixed cost. (Do not round intermediate calculations and round youranswers to 2 decimal places.)Cost formula+ $0.29 per unit

Answered: b. Use the high-low method to calculate…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter6: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 1BE: High-low method The manufacturing costs of Rosenthal Industries for the first three months of the...

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I need help with part b please, i have part a done

Problem 12-19 (Algo) High-low method LO 6
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
Variable costs
Fixed costs
Mixed costs
Total costs
During October, the activity level was 8,800 units, and the total costs incurred were $69,500.
Required:
a. Calculate the variable costs, fixed costs, and mixed costs incurred during October.
Variable cost
Fixed cost
Mixed cost
5,000
$ 9,500
32,000
19,680
$61,180
October
$ 16,720
$ 32,000
$ 20,780

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
+ $
0.29 per unit

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A mixed cost is a type of cost that includes the component of both fixed costs and variable costs. In other words, the costs that include some variable costs and some fixed costs are termed mixed costs.

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