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Budgeted X – 7000 units , Y – 3000 units
Actual X – 8000 units, Y – 7000 unitsSP: X – $30 , Y – $40
Standard contribution for both products is 30% of selling price.
Question: What is the sales quantity variance?
I keep getting 57,000 (F) but the right answer is 49,500 (F) , Could you please tell me where I am going wrong sir?
The actual sales are in total 15,000.
If they were in standard mix then it would be 10,500 X;s and 4,500 Y’x
At standard contributions of $9 and $12, this would give a total contribution of 148,500.
The budget sales give a total contribution of 99,000.
The difference is 148500 – 99000 = 49500.
Okay so the sales quantity variance is similar to the sales yield variance and not the sales volume variance as I calculated right? Thanks again John 😀
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