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Standard Costing

MMMishal Muzamil4y ago
Hello Sir. Help me in this question please A Co. uses Standard Absorption Costing System, for which standard profit was $135,000 . Sales Volume Variance $15000 Adverse Sales Price Variance $10,500 Favourable Total Variable Variance $7500 Adverse What was the ACTUAL PROFIT ? My only question is that "what will the standard profit $135,000 be considered as" Standard Profit on Budgeted Sales or Standard Profit on Actual Sales? So we can adjust the variances accordingly.
John MoffatJohn MoffatTutor4y ago#1
It will be the standard profit on actual sales (otherwise it would have been referred to as the budgeted profit).
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