- This topic has 3 replies, 2 voices, and was last updated 4 years ago by
.
- Posts
In the quiz section of Advanced variances,there is a question on finding the sales volume contribution variance
Budget sales X-7000 at 30$ per unit units Y-3000 at 40$ per unit.The standard contribution is 30%.
Actual sales are X8000 and Y 7000 units.Find sales quantity contribution variance.In this question, are we supposed to find the contribution we got vs how much contribution we shouldve got,or is it just Sales volume variance *Contribution Per unit.Please explain the idea behind this.
You write in your first line that there is a question on finding the sales volume contribution variance. There is not – one question asks for the sales quantity variance and another asks for the sales mix variance (the sales volume variance is the total of the two).
For the quantity variance, we compare the actual total sales at standard mix with the budget sales, costing each out at the standard contribution.
I explain all this, with an example, in my free lectures, and so I am puzzled why you did not watch the lecture before attempting the test.
Don’t be puzzled I always watch your lecture and then attempt the test .The problem was when I took down the notes of key points you say, I made a mistake and mistook sales quantity variance and sales volume variance as the same .I understand it now though
- The topic ‘Sales Quantity Contribution Variance’ is closed to new replies.