Semi-variable, Fixed cost Level 4
Options
jmh
Registered Posts: 42
I am working on the flex budget question 6.1 from Osborne book (tutorial) and I am struggling to understand how they came to the 94000 for the electricity.
The question is energy: Original budget - 79000
Actual budget - 85000
The budget for energy is semi variable. The fixed element is 4000
What I did is the following: 79000 - 4000 = 75000, 75000/50000 = 1.5 per unit then I did the 1.5 x 60000 = 90000
Do I need to then add the 4000 to the 90000 as the 90000 is only the semi variable
Thank you for help
The question is energy: Original budget - 79000
Actual budget - 85000
The budget for energy is semi variable. The fixed element is 4000
What I did is the following: 79000 - 4000 = 75000, 75000/50000 = 1.5 per unit then I did the 1.5 x 60000 = 90000
Do I need to then add the 4000 to the 90000 as the 90000 is only the semi variable
Thank you for help
0
Comments
-
You just have to add back the fixed element like you said as you've only worked out the semi-variable amount0
-
thank you.0
Categories
- All Categories
- 1.2K Books to buy and sell
- 2.3K General discussion
- 12.4K For AAT students
- 268 NEW! Qualifications 2022
- 146 General Qualifications 2022 discussion
- 9 AAT Level 2 Certificate in Accounting
- 46 AAT Level 3 Diploma in Accounting
- 67 AAT Level 4 Diploma in Professional Accounting
- 8.8K For accounting professionals
- 23 coronavirus (Covid-19)
- 269 VAT
- 90 Software
- 271 Tax
- 133 Bookkeeping
- 7.1K General accounting discussion
- 196 AAT member discussion
- 3.8K For everyone
- 38 AAT news and announcements
- 345 Feedback for AAT
- 2.8K Chat and off-topic discussion
- 578 Job postings
- 16 Who can benefit from AAT?
- 35 Where can AAT take me?
- 42 Getting started with AAT
- 26 Finding an AAT training provider
- 48 Distance learning and other ways to study AAT
- 25 Apprenticeships
- 66 AAT membership