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Alpha co 5000

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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  5,000
Variable costs  10,000
Fixed costs  30,000
Mixed costs  20,000
Total costs  60,000

During October the activity level was 8,000 units, and the total costs incurred were
$70,500.

Required:
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 cost.

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