- This topic has 3 replies, 2 voices, and was last updated 10 years ago by
.
- Posts
Hi, jhon sir, i got a problem again, please help me.
A company use a standard marginal costing system, the following figures are avaliable for the last accounting period in which the actual profit was $124,000.
sales volume contribution variance: $9000(F)
sales price variance: $8000(A)
Total variable cost variance: $13000?F)
Fixed cost expentiture variance: $4000 (A)
what was the standrad profit for the actual sales in the last accounting period?You need to add the fixed cost variance, subtract the variable cost variance, add the sales price variance to get back to the standard profit.
The sales volume variance is not relevant because this is the difference between budget profit and standard profit for actual sales – the question asks for standard profit for actual sales, not for the original budget profit.
- You must be logged in to reply to this topic.