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KDF Itd has provided the following schedule of expenditures for two of its activity levels...

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Question

Accounting

KDF Itd has provided the
following schedule of
expenditures for two of its
activity levels from their past
records:
40,000
units
70,000
units
90,000
units
Material
cost (ksh)
6,360,0009,780,000
S=?
Labour cost 4,620,000
(ksh)
T=?
9020,000
Maintenance
cost (ksh)
U=?
3,960,000
V=?
Total cost
W=?
X=?
Y=?
The fixed maintenance cost at 70,000 units activity level is ksh 600,000
Required:
Calculate the missing value U
A.Ksh3,040,000
B. Ksh 1,880,000
C. Ksh 2,680,000
D. Ksh 2,520,000

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