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October 7, 2022 at 12:29 pm
Why is it called sales volume variance, when we multiply the difference between actual and budgeted sales by standard profit per unit??
John Moffat says
October 7, 2022 at 4:11 pm
Because it is measuring the affect of the change in the number sold (i.e. the volume of the sales).
February 6, 2022 at 10:47 am
Hi Mr John, I don’t really understand where $7 came from.
February 6, 2022 at 3:23 pm
It is the standard profit per unit. The standard selling price is $75 and the standard cost is $68 (from the question) and therefore the standard profit is 75 – 68 = $7 per unit.
February 9, 2022 at 9:43 pm
Oh, okay. Thanks!
March 25, 2019 at 7:29 am
I explain in the first lecture on variances why, when using absorption costing, we have to deal with fixed overheads differently. It is exactly the same reason as having to deal with the over/under absorption of fixed overheads as explained in the earlier lectures on absorption and marginal costing.
February 10, 2022 at 5:35 am
This is the 4th out of 5 lectures. Watch the 5th lecture!!
March 24, 2019 at 8:22 pm
hi, you never looked at why the fixed overheads changed in this lecture, or if you would do a fixed overhead variance.
as the fixed overheads didn’t stay the same through the fixed budget, flexed budget and actual results. Please explain this. thank you
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