# High-low method-missing amounts

July December

E12.2

Production level, in units........... 5,000 10,000

Variable costs........................... $12,000 $ ?

Fixed costs.............................. ? 18,000

Mixed costs............................ 10,000 ?

Total costs............................. $40,000 $59,000

a.Calculate missing costs.

b.Calculate cost formula for mixed cost using the high-low method.

c.Calculate the total cost that would be incurred for the production of 8,000 units

d.Identify the two key cost of behavior assumptions made in the calculation of your answer to part c.

https://brainmass.com/business/accounting/high-low-method-missing-amounts-492197

#### Solution Preview

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Missing amounts

July December

Production level, in units 5,000 10,000

Variable costs $12,000 $24,000

Fixed costs $18,000 $18,000 ...

#### Solution Summary

This solution calculates the missing costs, the cost formula for mixed cost using the high-low method, and the total costs based on the given financial information.