- November 16, 2015 at 8:57 am #282765
could anyone help me know how question 5 is to be done in the mock paper?answer=$6.69November 16, 2015 at 9:00 am #282766
thanks in advance 🙂November 16, 2015 at 9:36 am #282773
If you mean the mock exam on our website then you need to copy and paste the question in order to get an answer.
The reason is (as is stated on the introductory page before the test), the questions are taken at random from a large bank of questions. Every time you take the test you are likely to get different questions, and so ‘question 5’ is different every time.November 16, 2015 at 10:28 am #282783
this year the output is 5000 units and overhead cost is $31,000.
three years ago the output was 2000 units and overhead costs was $8,800.
the price index was 132 three years ago and is 164 this year.
using the high low technique, calculate the variable cost per unit(to the nearest $0.01) expressed in current year prices?November 16, 2015 at 11:36 am #282806
First you need to restate the cost 3 years ago in current prices:
8,800 x 164/132 = $10,933
Now you can use the normal high-low approach. So the variable cost per unit = (31,000 – 10,933) / (5,000 – 2,000) = $6.69November 16, 2015 at 11:42 am #282815
thank you very muchNovember 16, 2015 at 7:56 pm #283110
You are welcome 🙂
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