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variance

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › variance

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by John Moffat.
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  • November 7, 2014 at 4:19 pm #208256
    taraf
    Member
    • Topics: 3
    • Replies: 2
    • ☆

    A company has budgeted on selling 7000 units of product X at a selling price of $30 per unit
    and 3000 units of product Y at selling price of $40 per unit. The standard contribution per unit is 30% of selling price for both products

    They actually sell 8000 units of X and 7000 units of Y.

    What is the Sales quantity variance?

    November 7, 2014 at 6:59 pm #208309
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54659
    • ☆☆☆☆☆

    If you have a problem then ask, but please do not just set me a question!
    I can do the question, but it is not me who is sitting the exam.

    They budgeted on selling a total of 10,000 units, and making a contribution of 99,000.

    They actual sold a total of 15,000 units, and so the volume variance is 5/10 x 99,000 = 49500.

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