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 Adv
I am confused about how to get the actual contribution since it's not written in my kaplan f2 textbook..
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Actual Contribution
10y ago#1If 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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