Stepped Costs

katieen1 Registered Posts: 6 Regular contributor ⭐ ? ⭐
I am currently revising for the budgeting cba and I am struggling to understand how to calculate stepped costs.

Tha question says that the budget for equipment hire is stepped, increasing at every 15,000 units of monthly production.

On the monthly operating statement is has:
Budget is 76,000 units and £48,000
Actual is 72,000 units and £42,000
Flexed budget is 72,000 units

Please could someone explain this for me???? I have read the other discussions on stepped costs but I still cannot relate it to this question as I am completely baffled!!

Thank you for your help.



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