Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Practice Question n 2 Chapter 14

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- November 4, 2015 at 6:50 pm #280520
Dear Sir,

Could you please help me to understand where I made mistake if my answer is not correct?

A company has a budget to sell 7000 units of product X at selling price of $30 per unit and 3000 unit of product Y at selling price of $40.

The standard contribution per unit is 30% of selling price for both products. They actually sell 8000 units of X and 7000 unit of YWhat is qty contribution variances.

My answer is $49,500 (F)

Actual tot qty 15000 units

Budged tot qty 10000 units

5000 (F)Average contribution

7000 * ( 30%of 30) 63,000

3000 * (30%of 40) 36,000

99,000/10,000 = 9,9 *5000 = 49,500The answer provided in the question is 48,500 (F)

Thanks in advance for your help

GabriellaNovember 4, 2015 at 8:24 pm #280535It is a typing error and the correct answer is $49,500 favourable.

If you look at the answer at the end of the lecture notes then it does explain that it is $49,500 favourable!

You asked the same thing before and I gave you the same reply 🙂

November 4, 2015 at 9:29 pm #280541Hi Sir,

49,500 (F) is the answer that I got.I didn ‘t know that the answer were at the end of lecture note.

I don’t remember I had already asked the same question, if I did sorry.

Thanks for your replyGabriella

November 6, 2015 at 3:36 pm #280831It is no problem, and you are welcome 🙂

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