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hi sir
in exam section B
question give
selling price 20
fix overhead 5
variable overhead 5
profit 10inventory value in same about 500unit
margin
>sale volume contribution $1000
>standard contribution on actual sales $1500
> variable cost volume$3000
>fix overhead expenditure$4000
>actual profit$7000need to find absorption
sale volume contribution
standard contribution actual sales
variable cost volume
fix overhead expenditure
actual profithow to find up??? is it use inventory unit x $ and ignore margin??? confuse><
hi sir how to calculate the absorption sales volume? use inventory unit 500×10′??need to minus margin sales volume contribution or not?
I am sorry, but what you are asking does not make sense.
Absorption sales volume does not mean anything.
It seems as though this is a variance question, but you have made no mention of variances when you typed out the question.
I suggest that you watch our free lectures – they are a complete course for Paper F2 and cover everything needed to be able to pass the exam well.
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