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QUESTION 2 You are given the following data for DDD (Pty) Ltd from...

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Accounting

QUESTION 2

You are given the following data for DDD (Pty) Ltd from January to July.

Month

Activity Level (units)

Maintenance cost incurred

January

5,600

P7,900

February

7,100

P8,500

March

5,000

P7,400

April

6,500

P8,200

May

7,300

P9,100

June

8,000

P9,800

July

6,200

P7,800

Required:

  1. Calculate the fixed cost element using the high-low method. (8 marks)

  1. Calculate the cost of producing 10, 000 units. (4 marks)

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