The following transactions were recorded for the years 2016 to 2020: Year Spare parts  (units) Total cost  (K) 2016 1,000 120,000 2017 1,600 240,000 2018 2,200 473,000 2019 2,000 480,000 2020 2,500 520,000 Required: Calculate the total cost in the year 2021 assuming that APEL had 2,175 units.                   Describe (Four) different cost behaviours.

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter2: Building Blocks Of Managerial Accounting
Section: Chapter Questions
Problem 5PA: Wachowski Company reported these cost data for the year 2017. Use the data to complete the following...
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The following transactions were recorded for the years 2016 to 2020:

Year

Spare parts

 (units)

Total cost

 (K)

2016

1,000

120,000

2017

1,600

240,000

2018

2,200

473,000

2019

2,000

480,000

2020

2,500

520,000

Required:

  • Calculate the total cost in the year 2021 assuming that APEL had 2,175 units.                  
  • Describe (Four) different cost behaviours.
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