Variance Analysis Marginal Costing Example 4

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1. chandhini says:

   November 20, 2012 at 8:14 am

   Can you please solve this sum for me? I didn’t get the right answer. Thanks!
   A company uses standard marginal costing. Last month the standard contribution on actual sales was $10,000 and the following variances arose:
   Total variable cost variance: $2,000 Adverse
   Sales Price variance: $500 Favorable
   Sales volume contribution variance: $1,000 Adverse
   Find the actual contribution for last month.

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   • chandhini says:

     November 20, 2012 at 9:04 pm

     @chandhini, I really need to know the answer for this. Please help!

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   • kainosvik says:

     November 25, 2012 at 9:47 pm

     @chandhini,
     Budgeted Contribution 10,000
     Less Total Variable Cost Variances 2,000
     Add Sales Price Variance 500
     Actual Contribution is therefore 8,500

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2. allamardneket4 says:

   April 16, 2012 at 6:46 am

   why did he take sales price variances in marginal costing when you do not calculate it in marginal costing . and so the why did not he take fixed overhead capacity and efficiency variances??????????????????????????///

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3. allamardneket4 says:

   April 16, 2012 at 6:34 am

   @admin
   under marginal costing,fixed overhead expenditure variances i think the budget total cost should be 133500. or why it is 130500?
   at 10:22

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4. tanya92 says:

   January 9, 2012 at 5:52 pm

   this is goood !

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