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Task 5c practice assessment 2

sophie_612sophie_612 LondonRegistered Posts: 107
Hi,

can someone tell me how to work out the energy and depreciation on this one please.

Thanks
Sophie


Comments

  • sophie_612sophie_612 LondonRegistered Posts: 107
    @dumutroba do you know the answer to this please?
  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    edited May 2019
    Hello

    For the energy use the high low method as this is semi-variable cost

    For the depreciation
    250000units/20000 units in a step=12.5 or 13 steps
    £5850/13 steps =£450 in a step

    For the third draft
    225000/20000=11.25 or 12 steps
    £450x12=£5400
    You can chech calculations with the second draft
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  • sophie_612sophie_612 LondonRegistered Posts: 107
    dumutroba said:

    Hello



    For the energy use the high low method as this is semi-variable cost



    For the depreciation

    250000units/20000 units in a step=12.5 or 13 steps

    £5850/13 steps =£450 in a step



    For the third draft

    225000/20000=11.25 or 12 steps

    £450x12=£5400

    You can chech calculations with the second draft

    @dumutroba can you please help me with the high low method for energy i cannot work it out
  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    33250-31450=£1800
    250000-210000=40000 units
    1800/40000=£0.045 variable element per unit
    250000 x 0.045=11250 variable
    Therefore fixed will be 33250-11250=£22000

    For the third draft
    225000x0.045=£10125 variable
    Fixed. £22000
    Total cost. £32125
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
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