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Can someone help with this question? [ Actual contribution]

Forums › ACCA Forums › ACCA MA Management Accounting Forums › Can someone help with this question? [ Actual contribution]

  • This topic has 1 reply, 2 voices, and was last updated 1 month ago by John Moffat.
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  • May 11, 2022 at 3:38 pm #655415
    shuaib3332
    • Topics: 1
    • Replies: 2
    • ☆

    A company uses standard marginal costing to monitor its performance in a period actual profit
    was $142,000. Budgeted fixed overheads were $50,000 and the fixed overhead expenditure
    variance was $3,000 adverse. What was the actual contribution in the period

    i got 195000 by doing using this

    actual contribution – X
    less budgeted fixed overhead – (50000)
    fixed overhead expenditure – (3000)
    actual profit- 142000

    but the textbook got 145000 as an answer, i dont know what i am doing wrong, can someone plz help

    May 11, 2022 at 4:56 pm #655423
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 49583
    • ☆☆☆☆☆

    Assuming that you have copied the question correctly, then the answer is indeed $195,000 (and not $145,000!!).

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