# Managment Costing Practice Assessment Task 8 help

steph0123
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Can someone please explain how to work out the cost clarification and the total cost at 6000 miles ?

(Question and answer attached)

I understand Cost Clarification 2 is Variable but I can't seem to work out the others?

(Question and answer attached)

I understand Cost Clarification 2 is Variable but I can't seem to work out the others?

## Comments

264AAT Student, AATQBStepped fixed is £30000, because between 3000 miles and 5000 miles there is a step. 5000 miles and 8000 miles have same amount and since 6000 miles is between them we can assume 6000 miles is £30000

For semi variable use High low method by taking the cost at 2000 miles and 8000 miles

8000-2000 =6000 miles

92000-32000=£60000

60000/6000=£10

2000*10=20000 variable

32000-20000=12000 fixed

Variable cost for 6000 miles will be 6000*10=60000

Fixed cost will be 12000, therefore total cost will be £72000

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