The following data pertain to activity and costs for two recent months: Assuming that these activity levels are within the relevant range,the mixed costs for November were:
A)$40,000
B)$35,000
C)$25,000
D)$20,000

Question

The following data pertain to activity and costs for two recent months:  Assuming that these activity levels are within the relevant range,the mixed costs for November were:
A)$40,000 
B)$35,000 
C)$25,000 
D)$20,000

Quizplus · Accepted Answer

October variable cost per unit = $10,000 F1F1F1S1F1F1F10 5,000 units = $2.00 per unit
November variable costs = $2.00 F1F1F1S1F1F1F10 10,000 units = $20,000
Fixed costs do not change with changes in activity level,so November fixed costs will be the same as October,or $30,000.
Total costs for November - November variable costs - November fixed costs
= November mixed costs
$75,000 - $20,000 - $30,000 = $25,000

The Following Data Pertain to Activity and Costs for Two