[amyawa]

Thank you Sir, understood.

[amyawa]

Thank you, I have seen your videos but my confusion is the budgeted net profit which I’m confusing for budgeted contribution, I don’t know if they mean the same because I know absorption costing deals with budgeted profit while marginal deal with contribution. Thank you

[amyawa]

Hello Mr Moffat, I have a question:

A firm uses marginal costing and the actual net profit for the period was $30,000, the following are the variances for the period.
Material $300 Adverse
Labour $800 Favorable
Overheard $550 Adverse
Sales price variance $400 Favorable
Sales volume contribution $800 Favorable

What is the budgeted net profit of the period?

[Author]

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