help

omoinc

Can anybody help with task 2.1 on the June 2006 ECR paper I cannot for the life of me work out the variable costs formula for Direct material and Direct labour I had brain freeze


Thanks

carla030698

Hi,

The way I calculate it is to Divide the original cost by the original likely miles, then multiply by the new number of miles.

For example, to get the fuel costs for 12,000 miles the calculation would be:

8,000/10,000 x 12,000 = 9,600

Hope this helps!
:001_smile: