This was the first of the longer 15 mark questions. Part (a) was a simple calculation of the total variable cost per unit and total fixed overheads. It required an application of the high-low method.

Some candidates were able to work out the variable overhead cost correctly but then failed to go on and calculate the total variable cost per unit and as a result lost easy marks. Other answers simply didn’t realise that it was necessary to apply the high-low method at all and scored poorly.