Intermediate The Valuation Department of a large firm of surveyors wishes to develop a method of predicting its total costs in a period. The following past costs have been recorded at two activity levels:

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Number of valuations (V) Total cost (TC) () Period 1 420 82 200 Period 2 515 90275 The total cost model for a period could be rep- resented thus: A TC= 46 500 + 85V. B TC = 42 000 + 95V. C TC 46 500 - 85V. D TC= 51 500 - 95V. CIMA Stage 1 Cost Accounting