# Task 5c practice assessment 2

LondonRegistered Posts: 131
Hi,

can someone tell me how to work out the energy and depreciation on this one please.

Thanks
Sophie

• LondonRegistered Posts: 131
• AAT Student, AATQB Posts: 264
edited May 2019
Hello

For the energy use the high low method as this is semi-variable cost

For the depreciation
250000units/20000 units in a step=12.5 or 13 steps
£5850/13 steps =£450 in a step

For the third draft
225000/20000=11.25 or 12 steps
£450x12=£5400
You can chech calculations with the second draft
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%
• LondonRegistered Posts: 131
dumutroba said:

Hello

For the energy use the high low method as this is semi-variable cost

For the depreciation

250000units/20000 units in a step=12.5 or 13 steps

£5850/13 steps =£450 in a step

For the third draft

225000/20000=11.25 or 12 steps

£450x12=£5400

You can chech calculations with the second draft

@dumutroba can you please help me with the high low method for energy i cannot work it out
• AAT Student, AATQB Posts: 264
33250-31450=£1800
250000-210000=40000 units
1800/40000=£0.045 variable element per unit
250000 x 0.045=11250 variable
Therefore fixed will be 33250-11250=£22000

For the third draft
225000x0.045=£10125 variable
Fixed. £22000
Total cost. £32125
AAT Level 2. 2018 Distinction
AAT Level 3. 2018 Distinction
AAT Level 4. 2019 FSLC 100% MABU 93% MADC 82% PDSY 80%