Semi Variable Costing
bobber122
Registered Posts: 18 Dedicated contributor 🦉
Got a question on practice CBT 3 2.2
Cant figure out the semi variable cost
Energy in July budget 114625
Budgeted sales revenue in units 27500
Actual energy 114250
Actual units sold 26000
How do i work out the answer that is given which is 113500?
Thanks,
Jake
Cant figure out the semi variable cost
Energy in July budget 114625
Budgeted sales revenue in units 27500
Actual energy 114250
Actual units sold 26000
How do i work out the answer that is given which is 113500?
Thanks,
Jake
0
Comments

I have just looked at this for you. You have left out one vital piece of information. The fixed element is £94,000 per month.
Therefore, 114625  94000 = 20625
20625/27500 = 0.75
0.75 x 26000 = 19500
19500 + 94000 = 113500
hope this helps0 
Thanks I am also struggling with the stepped costs on the same question. Am i right in saying i divide 27500 units by 9000 which is each step to get 4 steps.
I then do 60000 divide by 4 to give 15000.
Then i do 26000 divide by 9000 to get 3 steps...
15000 x 3 steps = 45000.
I know the answer is right, is this the way to do it correctly?
Thanks0
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