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sales quantity contribution variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › sales quantity contribution variance

  • This topic has 5 replies, 3 voices, and was last updated 7 years ago by John Moffat.
Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • March 5, 2016 at 4:30 am #303511
    bashith
    Participant
    • Topics: 5
    • Replies: 2
    • ☆

    15 The following budgeted data for a particular period was available for a company selling two products:
    Sales price Variable cost Sales volume
    per unit per unit in units
    Product A $20 $8 15,840
    Product B $24 $11 10,560
    The actual results for the period were as follows:
    Sales price Variable cost Sales volume
    per unit per unit in units
    Product A $22 $8 14,200
    Product B $26 $11 12,500
    What is the total sales quantity contribution variance for the period?
    A $3,720 F
    B $3,720 A
    C $4,320 F
    D $4,320 A

    note i am getting a difference answer(5540)

    March 5, 2016 at 10:06 am #303550
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    The budget total sales are 26,400 units, and the budget total contribution is $327,360.
    So the average standard contribution is 327,360 / 26,400 = $12.40 per unit.

    The actual total sales are 26,700 units, which is 300 more than budget.
    So the quantity variance = 300 x $12.40 = 3,720 (F).

    August 29, 2017 at 1:29 pm #404053
    duong123
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    Me as well, I am coming up with 5540 (f) why is it not correct? and in the actual exam, what should we do?

    August 29, 2017 at 4:34 pm #404100
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    I have no idea how you got 5540 and so how on earth can I explain whey it is not correct!!!

    I have explained in my previous post how to calculate the quantity variance correctly (and obviously that is how you should calculate it in the exam!!!!).

    I assume that you have watched my free lectures on this? The lectures are a complete free course for Paper F5 and cover everything needed to be able to pass the exam well.

    September 4, 2017 at 4:46 pm #405387
    duong123
    Member
    • Topics: 0
    • Replies: 2
    • ☆

    Sir, I could not thank you enough for your patient to answer my comment. I got volume and quantity variance mixed up. I have to come back to your lecture and listen to it again, very carefully.

    Again, thank you very much for all your help so far.

    September 4, 2017 at 5:29 pm #405446
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54665
    • ☆☆☆☆☆

    You are very welcome 🙂

  • Author
    Posts
Viewing 6 posts - 1 through 6 (of 6 total)
  • The topic ‘sales quantity contribution variance’ is closed to new replies.

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