XYZ Company Incurred the Following Costs for the Month of August

question 33

Essay

XYZ Company incurred the following costs for the month of August when it observed an activity level of 10,000 units.
$\begin{array}{lrr}\text { Activity level in units } & \underline{10,000} \\\text { Variable costs } & \$ 30,000 \\\text { Fixed costs } & 50,000 \\\text { Mixed costs } & \underline{40,000} \\\text { Total costs } &\underline{ \$ 120,000} \\\end{array}$
During October, the activity level was 16,000 units, and the total costs incurred were $150,000.
a.Calculate the variable costs, fixed costs, and mixed costs incurred during October.
b.Use the high-low method to calculate the cost formula for mixed costs.
c.If the activity level were expected to be 13,800 units for the month of December, what amount of total costs would be expected?

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Definitions:

Codicils

Amendments or additions made to an existing will, allowing for adjustments without needing to draft a new document entirely.

Trusts

Legal arrangements where one party holds property for the benefit of another, also used in monopolistic business contexts to refer to large corporations that exert significant control over a market.

Will

A legal document in which a person specifies the method to be applied in the management and distribution of their estate after death.

Intestate

A legal term describing the status of an individual who dies without a valid will, leading to their estate being distributed according to statutory laws.