Semi Variable cost

lindas1967

Original budget is 121000 units actual 105000 units
Energy 80000 actual 78000
Energy cost is semi variable the variable element is 0.50 per unit how do you work out the semi variable cost please

SandyHood

Step 1
Find the fixed cost

We already know that the total budgeted energy cost is. £80,000
The variable element is 121,000 units x £0.50/unit =...... £60,500
The difference between the two is the fixed cost..............£19,500

Step 2

Using the actual units find the total (flexed) energy cost
The fixed cost is ............................................................£19,500
The variable element is 105,000 units x £0.50/unit........£52,500
Total Energy cost (semi-variable cost)...........................£72,000

lindas1967

Thank you for your help