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How was the total sales variance of 28,280 (adverse) calculated. This was provided in the last paragraph of the ACCA suggested answers for JUNE 2013 #4.
https://www.accaglobal.com/content/dam/acca/global/PDF-students/acca/f5/exampapers/f5_2013_jun_a.pdf
It is the net of the sales price variance of 31320 (in the first paragraph of the answer to the last part) and the sales volume variance of 3040 (in the second paragraph of the last part)
Hi sir how come the sales mix variance is $13,366(A) when i calculated it i got $13,366(F).i used a different approach which is ACTUAL QUANTITY ACTUAL MIX and ACTUAL QUANTITY STANDARD MIX..but i got a favorable variance for commodity 1&3 so my answer ended up being up favorable and i am confused
Why do you say you used a different approach – your approach is the same as the examiner used in her answer!!!
The standard profit for the actual mix is lower than the standard profit for the standard mix, so the variance is adverse.
Look at working (2) and working (3) of the examiners answer – the variances for commodities 1 and 3 are adverse, for commodity 2 it is favourable. The overall total mix variance is adverse.
Oh okay thanks.Sir is there any point in doing the DEC 2013 past questions since it was the recent exam?is it better to focus on older questions or is it possible for the examiner to repeat questions from DEC13
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