The following question is taken from the July to December 2017 exam period. A company uses standard marginal costing to monitor performance. The budgeted profit and budgeted fixed overhead for a month were $25000 and $12000 respectively. In the month the following variance occurred: Sales volume contribution $1000 Adverse Sales price $2000 favourable Total variable costs $4000 Adverse Fixed production overhead expenditure $500 Adverse What was the actual profit for the month? Ans) 21500 Sir my question is why they didn’t deduct budgeted fixed overhead from the actual contribution?