Kowanaso Company ltd has recorded the following data for a semi-variable cost: Cost incurred Month January...

  

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Kowanaso Company ltd has recorded the following data for a semi-variable cost: Cost incurred Month January February March April May June Activity level (units) 1,800 2,450 2,100 2,000 1,750 1,950 (GHC) 36,600 41,150 38,700 38,000 36,250 37,650 Required: Using the High and Low method determine the following: i. Variable Cost per unit (6 marks) ii. iii. The fixed cost of KOWANASO Ltd for the period of operation (6marks) Define fixed cost and variable cost and state the difference between the two cost types (3marks) Total (15 marks) Kowanaso Company ltd has recorded the following data for a semi-variable cost: Cost incurred Month January February March April May June Activity level (units) 1,800 2,450 2,100 2,000 1,750 1,950 (GHC) 36,600 41,150 38,700 38,000 36,250 37,650 Required: Using the High and Low method determine the following: i. Variable Cost per unit (6 marks) ii. iii. The fixed cost of KOWANASO Ltd for the period of operation (6marks) Define fixed cost and variable cost and state the difference between the two cost types (3marks) Total (15 marks)

Answer rating: 100% (QA)

As High and low method is followed Variable fixed cost is to be calculated based on Highest production and level lowest production level i Variable co... View the full answer