Semi Variable cost

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 (semi-variable cost)...........................£72,000