The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range,the mixed cost for July was:
A)$10,000
B)$35,000
C)$15,000
D)$40,000

Question

The following data pertains to activity and costs for two months:  Assuming that these activity levels are within the relevant range,the mixed cost for July was:
A)$10,000 
B)$35,000 
C)$15,000 
D)$40,000

Quizplus · Accepted Answer

Variable cost per unit = $20,000 F1F1F1S1F1F1F10 10,000 units = $2 per unit
Total variable cost in July = $2 per unit F1F1F1S1F1F1F10 20,000 units = $40,000 per unit
Fixed cost = $15,000 (given)
Total cost = Variable cost + Fixed cost + Mixed cost
$70,000 = $40,000 + $15,000 + Mixed cost
Mixed cost = $70,000 - ($40,000 + $15,000)
= $70,000 - $55,000
= $15,000

The Following Data Pertains to Activity and Costs for Two