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ABC Co has a manufacturing capacity of 10,000 units. The flexed production cost budget of the company is as follows:
Capacity:60%
100%
Total production costs:
$11,280
$15,120
What is the budgeted total production cost if the company operates at 85% capacity?13,680
See your other post on costing to find the method used to work these kinds of questions.
Alkemists is correct again 🙂
The total cost is part fixed and part variable, and so you need to use the high low approach.
Thank you very much for your response however I still don’t understand those type of question as these areas are my weak spot.
Thanks for the response and No I haven’t watched the Lectures on this but as you have mentioned it I will do soo.
If you have problems after watching then do post them on this forum and I will try and help.
Thank you soo much this means a lot to me I’m very thankful/grateful for your help regarding this.
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