A department of Delta Co. incurred the following costs for the month of June. Variable costs, and the variable portion of mixed costs, are a function of the number of units of activity:

During July, the activity level was 16,000 units, and the total costs incurred were $141,000.

Required:
a. Calculate the variable costs, fixed costs, and mixed costs incurred during July.
b. Use the high–low method to calculate the cost formula for mixed cost.

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Activity level in units Variable costs..... Fixed costs.. Mixed costs ........ Total costs.... .... 10,000 $20,000 $60,000 $40,000 $120,000