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Hello sir,
With reference to kaplan exam kit questions question 39 (pg 12) and question 61 (pg 18) could you please help me with my confusion on high-low method. so if there are three different activity levels have been provided do we just have to take the highest and lowest activity levels? If so they have taken different approach to work out variable overhead cost per unit on Q39 (is it because the question here reads the variable cost per unit is constant ?)
I do not have the Kaplan kit – only the BPP Kit – and so I cannot help you with the specific questions.
If they have given three then probably for one of the them either the fixed cost changes or the variable cost changes – you would be told that in the question. If you are told that, then take the two where there is no change, and do high-low on those two.
If the variable and fixed costs are not changing then you can use any two because they will all give the same answer.
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