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Sir.
volume variance is the only variance that is calculated differently using marginal costing ..
So are both efficiency and capacity variances too included ?I assume that you are referring to the fixed overhead volume variance, in which case with marginal costing there is no volume variance (and therefore no efficiency or capacity variances).
If you are referring to the sales volume variance, then absorption and marginal calculate it the same way except that absorption uses standard profit whereas marginal uses standard contribution. However there are no capacity and efficiency variances relating to the sales volume variance.
I suggest that you watch my free lectures on this. The lectures are a complete free course for Paper F2 and cover everything needed to be able to pass the exam well.
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