1. Handout 1
Managerial Accounting
Exercise 5-10
V.C
=
High cost – Low cost
High activity – Low activity
V.C
=
250,000
–
160,000
26,000
–
11,000
V.C
=
6 per miles
………………………………………………………………………………………………………………………………………..
F.C
=
High cost - ( high activity X V.C per unit)
F.C
=
250,000 - (26,000 X 6)
F.C
=
94,000
………………………………………………………………………………………………………………………………………
TC
=
TFC
+
TVC
Y
=
Y
Y
=
=
a
+
94,000
262,000
bx
+
6 x 28,000