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

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

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