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how come it used the weighted average standard profit per unit ? usually we use standard profit
I prefer to do it the way that I show in my free lectures (because I find it more logical) which is to compare the actual total sales at standard mix at standard profit with the budgeted sales at standard profit.
This give exactly the same answer as in the Revision Kit.
Hi John I watched the lecture and when I worked it out as you explained it gave me $300 (A)
basically I have found the difference between ‘Standard Qty Standard Mix’ with ‘Actual Qty Standard mix’ and multiply by the budgeted profit that is $10, $6, $2
I cannot find out what I am doing wrong
But that is not what I do in the lecture and it is not what I wrote in my previous reply !!!
For the quantity variance you compare the actual total sales (2,250 units) at standard mix (so X: 750; Y: 937.5; Z: 562.5) with the budget sales (X: 800; Y: 1,000; Z: 600)
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