• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Adverse Sale mix variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Adverse Sale mix variance

  • This topic has 5 replies, 4 voices, and was last updated 7 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • September 1, 2017 at 7:44 am #404659
    iyamu
    Participant
    • Topics: 286
    • Replies: 171
    • ☆☆☆

    Bloom limited was the subject of the following press story : yellow sells two types of squash ball, the type A and the type B . The standard contribution from the these balls is $4 and $5 respectively and the standard profit per ball is $1.50 and $2.40 respectively . The budget was to sell 5 type A balls for every 3 type B balls .
    Actual sales were up 20,000 at 240,000 balls with type A balls being 200,000 of that total. Yellow values it’s stock of balls at std marginal cost.
    What is the value of the adverse sales mix variance .
    I have no problems finding the std. contribution from std mix $ which I have calculated to be $1,050,000 but the std contribution from actual mix $ is where I got a problem and the kit did not give a clue on this but just the round figure of $1,000,000. The adverse sales mix variance = 1,000,000 – 1,050,000 = $ 50000adv

    Please , kindly assist on this to find the std contribution from actual mix $ .

    Thanks in advance .

    September 1, 2017 at 11:26 am #404838
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    The actual sales are 200,000 type A and 40,000 type B.

    So the standard contribution = (200,000 x $4) + (40,000 x $5) = $1,000,000

    November 14, 2018 at 8:35 am #484768
    waqar
    Member
    • Topics: 1
    • Replies: 2
    • ☆

    Plz tell me what are standard quantities for both A and B for same question

    November 14, 2018 at 5:55 pm #484828
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    Since the question says that out of every 8 balls, 5 will be A and 3 will be B, then the standard quantities will be for A 5/8 of the total and for B 3/8 of the total.

    November 20, 2018 at 3:14 am #485285
    dipatil
    Participant
    • Topics: 56
    • Replies: 104
    • ☆☆

    John, why we consider the margin contribution and not the profit margin in this case?

    November 20, 2018 at 7:28 am #485295
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    Because the question says that they value inventory at the standard marginal cost.

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • LiliaDvornikova on Statement of cash flows – Example 1 (revision) – ACCA Financial Reporting (FR)
  • BurtBikkie on Professional Ethics – ACCA Audit and Assurance (AA)
  • Lameesmazrooe on ACCA BT Chapter 4 – Organisational culture – Questions
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Abdinur on FA Chapter 22 Questions Group Accounts The Consolidated Statement of Financial Position (1)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in