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variable cost12
fix cost 4
standard profit6
standard selling price 22sales volume variance report was 12000adverse
calculate the sales volume variance that shown in marginalcost operating statement
22-6=16
12000×16??right??
No!
If the sales volume variance is $12,000, then they must have produced 12,000 / 6 = 2,000 units less than budgeted.
If they were doing marginal costing, then the variance would be the 2,000 units multiplied by the standard contribution which is $10 per unit.
You must watch the free lectures on variances!
if calculate absorption sales volume variance is it multiply standard profit? selling price minus profit?
Profit is not selling price minus profit!
Profit is selling price minus costs.
Contribution is selling price minus variable costs.Again, I do suggest that you watch the free lectures!
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