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hi, sir
i would like to know how they get Actual sales units in std mix product A 16020 unit and product B 10680 ( bpp text book–practice question sec A–question 74) .
This question appeared in the June 2015 exam.
The following budgeted data for a particular period was available for a company selling twoproducts:
Sales price per unit Variable cost per unit Sales volume in units
Product A $20 $8 15,840
Product B $24 $11 10,560
The actual results for the period were as follows:
Sales price per unit Variable cost per unit Sales volume in units
Product A $22 $8 14,200
Product B $26 $11 12,500thank you and reagrds.
The budgeted sales are 15840 + 10560 = 26400 units
The actual total sales are 14200 + 12500 = 26700
Therefore the actual sales at standard mix will be:
Product A: 15840/26400 x 26700 = 16020
Product B: 10560/26400 x 26700 = 10680It will help you to watch my free lectures on sales mix variances.
The lectures are a complete free course for Paper F5 and cover everything needed to pass the exam well. If you are watching the lectures then you do not really need a Study Text. The one book you always need is a Revision Kit because practice at exam standard questions is so important.
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