- This topic has 1 reply, 2 voices, and was last updated 9 years ago by
.
- Posts
The following data relate to two output levels of a department.
Machine hours. 17000. 18500
Overheads. $246500. $251750What is the amount of fixed overheads?
Sir could u help me solve this questn
Have you watched the free lectures covering the high-low method? (Because I certainly cannot type out the lecture again here!!)
(Our lectures are a complete course covering everything you need to be able to pass Paper F2 well.)
The variable cost per unit = (251750 – 246500) / (18500 – 17000).
When you know the variable cost per unit, you can then take either of the two output levels, calculate the total variable cost, and the rest of the cost is then the fixed cost.
Again, you really must either watch the lectures (or if you don’t want to then study from a Study Text – there is not much point in attempting questions until you have studied the topics.)
- You must be logged in to reply to this topic.