Question 21.10 from BPP
Can I solve this question as below :
Budget profit 28000x 20 = 560.000
Less fixed cost
(143000+ 69000) = 348000
Actual sale 25000- Standard sale 28000 = 3000(A) x 20$ = 60.000$ A
Fixed production 30.000 $
Actual profit 318000$
I see my answer is the same with the answer in book .but in different way…
1- is my workings still fine ?
2- Sale – COGS- Closing inventory – Selling cost – BUDGET PROFIT- sale volume variance – STANDARD PROFIT – Selling price variance – variable cost Variance – fixed cost production-> ACTUAL PROFIT
Is it the full picture of the statement ? As sometimes the question ask 1 element ( for ex : standard profit or actual profit ) and I don’t know where to start as I’m not sure where it stands in the statement
Thanks Mr John
Ah no , I’m so silly , if my workings is like what you taught in the lecture , it will be much faster .
25000 unit x (80-60) = 500.000
Less all fixed ( 113000+ 69.000)
Final profit is still 318000
Thanks Mr John ?
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