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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › variance – sales volume contribution variance
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 $29
What 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
The 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)
hi sir, I know that was wrong to mention 200 units as budget units
appreciate for the informed and thank you
You are welcome 🙂
