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hello
1)please help me figure out how to calculate actual values given variances. what variances do I know which variances to use and which ones to ignore. for example I’m given standard contribution on actual sales then a list of variances that may require me to find the actual budget profit or the actual profit for the period. these questions are really confusing me.2)also there is a question that gave me units of opening inventory 2000, units and value of the closing inventory,4 500 valued at 29250, profit for the period using absorption costing 34000 and profit for the period using marginal costing 25000..it asked me to find the variable cost per unit. and this is how I attempted it please tell me if it is correct or not.
– O.A.R =29250/4500=6.5
-(34000-25000)/2500=3.6
-6.5-3.6=2.93)a question asked me to allocate services cost to 2 departments based on the number of workers in each department. I just want to confirm that the number of workers in that service department will not be used in my calculation of the total number of workers that I will use to reapportion, eg, 50 in Y, 30 in Z and 20 in that service department, when allocating my total workers are 80 not 100 right.
1. The difference between the standard contribution on actual sales and the budgeted contribution is just the sales volume variance.
The difference between the standard contribution on actual sales and the actual contribution is all the other variances except the sales volume variance.2. Yes – your answer is correct. (But surely you already have the answer in the same book in which you found the question?)
3. Yes – that you have written is correct.
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