Hi sir, Hope you’re doing well. My doubt in the question is for fixed cost why are we substituting in 80% activity only and not 90%? 6180-(80*$6) And was direct material cost found by dividing change in activity level / change in %. i.e 2400-2700=300 So,300/10=30$ Per %
I do not know which edition of the BPP Revision Kit you are using. In the current edition there is no question 10a.3. There is a question 10.3 but it is on job costing and does not have any of the figures that you quote in your post.