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A company uses standard marginal costing. last month the standard contribution on actual sales was $10,000. the variances were:
total variable costs variance $2000 Adv
Sales proce variance $500 Fav
sales volume contribution variance 1000 AdvI am confused about how to get the actual contribution since it’s not written in my kaplan f2 textbook..
If the standard contribution on actual sales was 10,000, then the actual contribution will be 10,000 – 2,000 + 500 = 8,500.
The sales volume variance is not relevant because that is the difference between the budget contribution and the standard contribution on actual sales, and we are given the latter.
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