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cost accounting exercises high low method variation
Typology: Quizzes
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Hours Cost Highest Activity (^) 9,000 1, Lowest Activity (^) 3,000 880 Difference (^) 6,000 1, Variable Cost Per Unit = (^) Change in total costs / Change in activity level = P1,080/6,000 hours = Highest Level = 9,000 x P 0.18 = P 1,620^ Lowest Level = 3,000 x P 0.18 = Highest Level = P 1,960 - P 1,620 = P^340 Lowest Level = P 880 - P 540 =
P1,080/6,000 hours = P 0.18 per machine hour P 540 P 340