Accounting 9706 · AS & A Level · Costs and cost behaviour

Costs and cost behaviour — practice question

A company has a semi-variable cost for each employee hour worked. When hours worked go beyond 10 000, an additional fixed administrative cost of $600 is charged. The table below gives hours worked and administrative cost: - 8000 hours: administrative cost $20 000 - 10 000 hours: administrative cost $24 000 What is the total administrative cost if 12 000 hours are worked?

  • A$28 600
  • B$30 600
  • C$33 400
  • D$34 600

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