High–low method—missing amounts The following data have been extracted from the records of Riddle Co.: July December Production level, in units 5,000 10,000 Variable costs $12,000 $ ? Fixed costs ?...

High–low method—missing amounts The following data have been extracted from the records of Riddle Co.:

Required:

a. Calculate the missing costs.

b. Calculate the 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 behavior assumptions made in the calculation of your answer to part c.