Home For AAT student members AQ 2016 Advanced Diploma in Accounting General discussion - Advanced level

Cost Classifications

Hi,

can anybody have a look at the attached question and explain to me how they got these answers as I'm a little confused.

Thanks
Sophie

Comments

  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    What I usually do
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • dumutrobadumutroba AAT Student, AATQB Posts: 264
    That is just classification
    For the calculation
    1 is obviously 60000 because its fixed
    2 is 6000x9
    3 is 30000
    4 you have to use high low method

    Good luck
    AAT Level 2. 2018 Distinction
    AAT Level 3. 2018 Distinction
    AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
    Xero Certified Advisor
  • AmnaAmna Registered Posts: 2
    hi sphie how you calculated sami variable cost
    high low method 8000*11.50=92000- 2000*16= 32000 = 60000/6000=10 per unit
    I am stuck could anyone explain me please
  • Hannah9210Hannah9210 Registered, AAT Student Posts: 3
    Amna- the calculation you have done has worked out the variable per unit. You would then need to carry this calculation on to find your fixed cost.

    Total cost for high - variable cost (92000- 10 x 8000) =12000

    So 12000 will be your fixed cost and 10 x 6000 will be your variable cost.

    =72000

    Hope that makes sense!
  • AmnaAmna Registered Posts: 2
    thanks sophie
Sign In or Register to comment.