ACCA F2 Revision part 9a Index Numbers

F2 Revision Lectures

Revision notes page used in this lecture


  1. Profile photo of Erica says

    Sir, help?
    This year, the output is 5000 units and the overhead cost is $31000. Three years ago, the output was 2000 units and the overhead cost is $8800. The price index was 132 three years ago and is 164 this year. Using the high-low technique, what is the variable cost per unit (to the nearest $0.01) expressed in current year prices?

    (answer is $6.69) i got this question from the revision mock exam.

    • Profile photo of John Moffat says

      You restate the cost 3 years ago in current price terms. It is $8,800 x 164/132 = $10,933

      Then you use the normal high/low approach.
      High is 5,000 units with cost $31,000
      Low is 2,000 units with cost $10,933

Leave a Reply