Practice Assessment 1- Task 1b.

Best Answers
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EmilyRose Posts: 11
Hi Gabrielle,
Answers are 21000- F- 181000 V-126000
36000 F-193000 V-205000
Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
Hope this helps.
Emily
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EmilyRose Posts: 11
That’s the variable figure for units produced under 25000, after that the variable figure reduces to £5/unit. You can work this out using the high low method :-)
Answers
> Hi Gabrielle,
>
> Answers are 21000- F- 181000 V-126000
> 36000 F-193000 V-205000
>
> Variable for 36000 units worked out as 25000 x £6= 150,000 11000 x £5=55000...150000+55000=205000.
>
> Hope this helps.
>
> Emily
Thanks, but where does the £6 come from?
As both production levels shown are under the 30,000, you can use the high low method to find the vcpu.
23000-19000=4900
324400-295000=29400
Divide 29400 by 4900 to give you 6
The fixed overheads for 21000 should be 169000. The 12000 increase only happens after more than 30000 are produced?
I have fixed overheads at £181,000 as they are for 19000 units and 23000 units, I only added the £12,000 increase to the 36000 units.. could be wrong though..
No sorry you are right. I was working it out at 21000 units as you say. Not liking this unit!!
If that is level 4 I am so ready for it
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