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