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xltd produces 4000units of certain product @100% capacity.
capacity 60% 80%
units produced 2400 3200
repairs and 5000 5600
maintenance
power 18000 20000
shop labour 7000 9000
consumables stores 14000 18000
salaries 10000 10000
inspection 2000 2400
depreciation 14000 14000
compute the cost of production @60%, 80% and 100% capacity showing variable, fixed and semi-variable costs under flexible budgetPlease do not simply set me test questions and expect me to answer!
You must have an answer in the same book in which you found the question, and so you should ask about whatever it is in the answer that you are not clear about and then I will help you.
I am not sure you have typed out all of the question anyway, because there is no mention of materials!
Of those you have typed, it should be obvious to you that salaries and depreciation are fixed costs, and that all the others are semi-variable costs and therefore you need to use the high-low method to find the variable cost and the fixed cost. This is all explained in my free lectures.
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