• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for September 2025 exams.
Get your discount code >>

Reconciliation under absorption costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Reconciliation under absorption costing

  • This topic has 1 reply, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • May 3, 2024 at 3:53 pm #704894
    dangkhoa.nhhtd
    Participant
    • Topics: 49
    • Replies: 33
    • ☆☆

    The 20YY outcomes for Wellness Factory are outlined below:

    The sales target for 20YY was 2,000 units at €30 per unit.

    Each football’s standard absorption cost was €21, and the standard contribution per football was €18.

    In 20YY, actual results were as follows:

    2,100 footballs were sold for €168,300, with non-production overheads totaling €34,500.

    The variances computed were:

    Sales volume variance: €4,200 (favorable)
    Sales volume contribution variance: €5,400 (favorable)

    Hello tutor, I have a question relating to this exercise of reconciliation under standard absorption costing. I understand that we have to start with budgeted profit and then adjust it with sales volume variance to come to standard profit on actual sales. But the sales volume contribution variance is never in use. I do not understand why we only use volume variance but not volume contribution variance in this reconciliation issue?

    Thank you tutor!

    May 4, 2024 at 7:35 am #704919
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54699
    • ☆☆☆☆☆

    You have not stated what it was that the question was asking you to calculate.

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE 2025 Exams

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • mrjonbain on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Ken Garrett on The nature and structure of organisations – ACCA Paper BT
  • OmarAlbeity on ACCA BT Chapter 6 – Some legal obligations – Questions
  • Salimbek909 on The nature and structure of organisations – ACCA Paper BT

Copyright © 2025 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in