Semi Variable cost
lindas1967
Registered Posts: 16 New contributor 🐸
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
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
0
Comments

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 (semivariable cost)...........................£72,000Sandy
sandy@sandyhood.com
www.sandyhood.com5 
Thank you for your help0
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