Practice Assessment 1- Task 1b.

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  • gabriellenlewisgabriellenlewis AAT Student Posts: 124
    > @EmilyRose said:
    > Hi Gabrielle,
    >
    > Answers are 21000- F- 181000 V-126000
    > 36000 F-193000 V-205000
    >
    > Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
    >
    > Hope this helps.
    >
    > Emily

    Thanks, but where does the £6 come from?
  • kevc90kevc90 Registered Posts: 7
    Variable cost per unit Emily.

    As both production levels shown are under the 30,000, you can use the high low method to find the vcpu.

    23000-19000=4900
    324400-295000=29400

    Divide 29400 by 4900 to give you 6
  • kevc90kevc90 Registered Posts: 7
    EmilyRose said:

    Hi Gabrielle,

    Answers are 21000- F- 181000 V-126000
    36000 F-193000 V-205000

    Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.

    Hope this helps.

    Emily


    The fixed overheads for 21000 should be 169000. The 12000 increase only happens after more than 30000 are produced?
  • EmilyRoseEmilyRose AAT Student, AATQB Posts: 11
    kevc90 said:

    EmilyRose said:

    Hi Gabrielle,

    Answers are 21000- F- 181000 V-126000
    36000 F-193000 V-205000

    Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.

    Hope this helps.

    Emily


    The fixed overheads for 21000 should be 169000. The £12000 increase only happens after more than 30000 are produced?

    I have fixed overheads at £181,000 as they are for 19000 units and 23000 units, I only added the £12,000 increase to the 36000 units.. could be wrong though..
  • kevc90kevc90 Registered Posts: 7
    EmilyRose said:

    kevc90 said:

    EmilyRose said:

    Hi Gabrielle,

    Answers are 21000- F- 181000 V-126000
    36000 F-193000 V-205000

    Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.

    Hope this helps.

    Emily


    The fixed overheads for 21000 should be 169000. The £12000 increase only happens after more than 30000 are produced?

    I have fixed overheads at £181,000 as they are for 19000 units and 23000 units, I only added the £12,000 increase to the 36000 units.. could be wrong though..

    No sorry you are right. I was working it out at 21000 units as you say. Not liking this unit!!
  • dumutrobadumutroba AAT Student, AATQB Posts: 131
    I loooove High Low method, so straight forward
    If that is level 4 I am so ready for it
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