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# Practice Assessment 1- Task 1b.

AAT Student Posts: 129
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• AAT Student Posts: 129
> @EmilyRose said:
> 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?
• Registered Posts: 8
Variable cost per unit Emily.

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
• Registered Posts: 8
EmilyRose said:

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

The fixed overheads for 21000 should be 169000. The 12000 increase only happens after more than 30000 are produced?
• AAT Student, AATQB Posts: 11
kevc90 said:

EmilyRose said:

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

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..
• Registered Posts: 8
EmilyRose said:

kevc90 said:

EmilyRose said:

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

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!!
• AAT Student, AATQB Posts: 264
I loooove High Low method, so straight forward
If that is level 4 I am so ready for it
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%