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please ANSWER MY QUESTION

Forums › ACCA Forums › General ACCA Forums › please ANSWER MY QUESTION

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by Kim Smith.
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    Posts
  • May 21, 2021 at 3:29 pm #621347
    dennissherpa101
    • Topics: 25
    • Replies: 36
    • ☆☆

    Dear Anyone
    CAN YOU EXPLAIN WHY WE CANNOT USE 3000 AS THE HIGHEST LEVEL ACTIVITY AND 1000 AS THE LOWEST LEVEL ACTIVITY SINCE FC AND VC ARE THE SAME WITHIN THIS RANGE?

    (THANK YOU)
    The following question is taken from the December 2011 exam.
    The following shows the total overhead costs for given levels of a company’s total output.
    Cost Output
    $ Units
    4,000 1,000
    7,000 2,000
    10,000 3,000
    9,500 4,000
    A step up in fixed costs of $500 occurs at an output level of 3,500 units.
    What would be the variable overhead cost per unit (to the nearest $0.01) using the high-low technique?
    ? $1.67 per unit
    ? $1.83 per unit
    ? $2.75 per unit
    ? $3.00 per unit

    May 21, 2021 at 4:11 pm #621350
    Kim Smith
    Keymaster
    • Topics: 88
    • Replies: 6090
    • ☆☆☆☆☆

    This is a forum for “general” queries that are not specific to a particular ACCA exam.

    You need to post this to the MA forum with a subject line that is indicative of the nature of the question – e.g. “High-low method”

    But perhaps read up on the topic/check our lecture first: https://opentuition.com/acca/ma

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