Monthly Operating Report
sophie_612
Registered Posts: 136 Dedicated contributor 🦉
Hi,
I can work out all the other answer about from equipment hire and other production costs, please can someone help me out?
Equipment hire is - 50000
Other production cost answer is - 47600
Thanks
Sophie
I can work out all the other answer about from equipment hire and other production costs, please can someone help me out?
Equipment hire is - 50000
Other production cost answer is - 47600
Thanks
Sophie
0
Comments
-
For the production overheads you will need to apply the high low method to find what the fixed element is
OR simply 0.40*73000units = 29200 variable, therefore fixed is 46400-29200=17200
76000*0.40=30400 variable + fixed of 17200=47600
Equipment hire will be 73000/25000 units = 2.92 or 3 steps
£37500/3=£12500 = 1 step
therefore 76000/25000=3.04 or 4 x £12500 = £50000AAT 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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@dumutroba thank you for helping, one question i do have is am i suppose to round for example where you put 2.92 or 3 and 3.04 or 4 do we automatically just round up as it isn't stated in the question what they want me to do?dumutroba said:For the production overheads you will need to apply the high low method to find what the fixed element is
OR simply 0.40*73000units = 29200 variable, therefore fixed is 46400-29200=17200
76000*0.40=30400 variable + fixed of 17200=47600
Equipment hire will be 73000/25000 units = 2.92 or 3 steps
£37500/3=£12500 = 1 step
therefore 76000/25000=3.04 or 4 x £12500 = £500000 -
Yes you round up, because you are past the threshold, that being a stepAAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
Xero Certified Advisor0
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