- This topic has 1 reply, 2 voices, and was last updated 5 years ago by
.
Viewing 2 posts - 1 through 2 (of 2 total)
- Posts
Here’s a question:
A company uses standard marginal costing. Last month the standard contribution on actual sales was $44000 and the following variances arose:
Total variable costs variance $6500 A
Sales price variance $2000F
Sales volume contribution variance $4500AWhat was actual contribution of last month?
Sir in this question am not able to fathom as to why sales volume contribution variance is not being deducted from $44000?
The volume variance is the difference between the standard contribution on actual sales and the standard contribution on the budgeted sales.
It is irrelevant here because the $44,000 is the standard contribution on the actual sales (not the contribution on budgeted sales).
Viewing 2 posts - 1 through 2 (of 2 total)
- You must be logged in to reply to this topic.