XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level were expected to be 11,000 units for the month of December, what amount of total costs would be expected? Select one: O a. None of the answers given O b. $151,000 O c. $160,000 O d. $142,000 O e. $133,000

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter6: Cost-volume-profit Analysis
Section: Chapter Questions
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XYZ Company incurred the following costs for the month of August when it observed an activity level of
5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During
October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level
were expected to be 11,000 units for the month of December, what amount of total costs would be
expected?
Select one:
O a. None of the answers given
O b. $151,000
O c. $160,000
O d. $142,000
O e. $133,000
Transcribed Image Text:XYZ Company incurred the following costs for the month of August when it observed an activity level of 5,000 units: Variable costs $32,500; Fixed costs $25,000; Mixed costs $21,500; Total costs $79,000. During October, the activity level was 16,000 units, and the total costs incurred were $178,000. If the activity level were expected to be 11,000 units for the month of December, what amount of total costs would be expected? Select one: O a. None of the answers given O b. $151,000 O c. $160,000 O d. $142,000 O e. $133,000
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