• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

March 2026 ACCA Exams

Comments & Instant poll

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

variance analysis

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › variance analysis

  • This topic has 3 replies, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • November 24, 2018 at 6:36 am #485746
    william2018
    Member
    • Topics: 11
    • Replies: 12
    • ☆

    W Ltd uses a standard marginal costing system. The following data relates to one of its products.

    selling price: $ 27/unit
    variable cost:$12/unit
    fixed cost :$9/unit
    profit :$6/unit

    Budgeted sales for control period 7 were 2400 units, but actual sales were 2550 units.The revenue earned from these sales were $67320.

    Profit reconciliation statements are drawn up using marginal costing system. Whar sales variance would be included in such a statement for period 7?

    A. price variance: $1530(A) volume variance: $900(F)
    B. price variance: $1530(A) volume variance:$2250(F)
    C. price variance: $1530(A) volume variance: $2250(A)
    D. price variance: $1530(F) volume variance : $2250(F)

    The correct answer is B

    I have been able to calculate volume variance by (2550-2400) x (27-12)= $2250(F)

    however I did not been able to calculate price variance

    I would be grateful if you can help me sir.

    November 24, 2018 at 9:33 am #485771
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    The actual sales at standard selling price = 2,550 x $27 = 68,850.
    The actual sales at actual selling price = $67,320

    Therefore the sales price variance is 68850 – 67320 = $1,530 adverse

    I do suggest that you watch my free lectures on this. The lectures are a complete free course and cover everything needed to be able to pass the exam well.

    November 24, 2018 at 4:55 pm #485829
    william2018
    Member
    • Topics: 11
    • Replies: 12
    • ☆

    Thank you, sIr for your precious explanation.

    November 25, 2018 at 9:54 am #485901
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54833
    • ☆☆☆☆☆

    You are welcome 🙂

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • The topic ‘variance analysis’ is closed to new replies.

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • LiliaDvornikova on Statement of cash flows – Example 1 (revision) – ACCA Financial Reporting (FR)
  • BurtBikkie on Professional Ethics – ACCA Audit and Assurance (AA)
  • Lameesmazrooe on ACCA BT Chapter 4 – Organisational culture – Questions
  • John Moffat on Introduction to Financial Accounting – ACCA Financial Accounting (FA) lectures
  • Abdinur on FA Chapter 22 Questions Group Accounts The Consolidated Statement of Financial Position (1)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in