• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for December 2025 exams.
Get your discount code >>

Sales Volume Variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Sales Volume Variance

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 7, 2024 at 8:22 am #697792
    CKAlibocas
    Participant
    • Topics: 3
    • Replies: 0
    • ☆

    Good day
    I am attempting the following question.

    A company is reviewing actual performance to budget to see where there are differences. The following standard information is relevant:
    $
    per unit
    Selling price 50
    ––
    Direct materials 4
    Direct labour 16
    Fixed production overheads 5
    Variable production overheads 10
    Fixed selling costs 1
    Variable selling cost 1
    ––
    Total costs 37
    ––
    Budgeted sales units 3,000
    Actual sales units 3,500
    What was the favorable sales volume variance using marginal costing?

    I am unsure if the standard contribution per unit is $20 or $19 ($19 will include the variable selling cost in my calculation of contribution per unit).

    Do I include the Variable selling cost in my calculation or do I focus on the Variable Production costs only?

    January 7, 2024 at 4:58 pm #697812
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54761
    • ☆☆☆☆☆

    The contribution is after charging all variable costs and so in this example is $19

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • barbaraseweryn on Presentation of Financial Statements (IFRS18) – ACCA Strategic Business Reporting (SBR) lectures
  • zurapirveli@gmail.com on Basic group structures – Impairment – ACCA (SBR) lectures
  • Sid24012003 on MA Chapter 5 Questions Ordering and Accounting for Inventory
  • John Moffat on FM Chapter 8 Questions – Relevant cash flows for DCF
  • slovett on FM Chapter 8 Questions – Relevant cash flows for DCF

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in