Calculate the missing costs

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Question - High-low method-missing amounts

The following data have been extracted from the records of Puzzle, Inc.:

 

February

August

Production level, in units

12,000

$18,000

Variable costs

$21,000

$ ?

Fixed costs

?

31,000

Mixed costs

18,000

?

Total costs

$70,000

$88,000

Required -

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 20,000 units.

d. Identify the two key cost behavior assumptions made in the calculation of your answer to part c.

Reference no: EM131724433

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