Variances

1) 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 2000 Adverse
Sales price variance 500 Favourable
Sales volume contribution variance 1000 Adverse

What was the actual contribution for last month?

Solution: Standard Contribution 10000
Sales price variance 500
Variable cost variance (2000)
Actual contribution = $8500

2) The Budgeted contribution for HMF Co for june was $290000. The following variances occurred during the month.

Fixed overhead expenditure variance 6475 Favourable
Total direct labour variance 11323 Favourable
Total variable overhead variance 21665 Adverse
Selling price variance 21875 Favourable
Fixed overhead volume variance 12500 Adverse
Sales volume variance 36250 Adverse
Total direct materials variance 6335 Adverse

What was the actual contribution for the month?

Solution:

STANDARD MARGINAL COSTING RECONCILIATION:

Original budgeted contribution 290000
sales volume variance (36250)

Standard contribution from actual sales 253750
selling price variance 21875

275625
Total direct material variance (6335)
Total direct labour variance 11323
Total variable overhead variance (21665)

Actual contribution = $258948

Hello sir, both questions are asking for actual contribution. i worked the first 1 and got the answer.. i did the same for the 2nd question but did not get the answer. why in the first question we shouldnt use sales volume and in the 2nd question we should use it?