Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › variance – sales volume contribution variance
- This topic has 3 replies, 2 voices, and was last updated 9 years ago by John Moffat.
- AuthorPosts
- February 22, 2015 at 12:54 pm #229617
A company operates a standard marginal costing system. Last month the company sold 200 units more than it planned to sell. The following data relate to last month:
selling price per unit – standard – $40 and actual $38
Variable cost per unit – standard – $30 and actual $29What was the favourable sales volume contribution variance last month ?
A.$1600 B.$1800 C.$2000 D.$2200 ( answer given is C)
My working :
Budget 200 units x $10 =$2,000 my answer is c.
(selling price : standard $40 – variable cost per unit $30= $10 standard profit for marginal cost) , $10 profit for standard marginal cost whether is correct ?and the question did not give actual unit therefore my working directly used the budget unit multiplied by the standard profit marginal cost per unit whether is correct ?
thank you
February 22, 2015 at 2:19 pm #229628The correct answer is C.
(Your workings are correct, except that you did did not use budget units – you used 200 units which is the difference between the actual units and the budget units)
February 23, 2015 at 11:46 am #229794hi sir, I know that was wrong to mention 200 units as budget units
appreciate for the informed and thank youFebruary 23, 2015 at 3:32 pm #229813You are welcome 🙂
- AuthorPosts
- You must be logged in to reply to this topic.