Hello,
This is my first time on the forum.
I am having serious trouble understanding the section on variances and operating statement – example below:

A company uses standard marginal costing. Last month the standard contribution on actual sales was $10000 and the following variances arose.

total variable costs variance – 2000A

Sales price variance – 500F

Sales volume contribution variance – 1000 A

What was the actual contribution for last month?

10000+500-2000=8500

I have tried to mix and match the lines against the Operating statement in my BPP book and I am just not getting it…the wording in the example doesn’t match to the Operating statement and I do not think I am putting the lines in the correct place.
I would be really grateful if somebody could help me with this, I have tried so hard but I am just completely stuck now.
Thank you very much.