variances

Budgeted contribution $20000 Sales volume contribution variance $5000(A) Standard contribution from actual sales $15000 Variance Sales price variance $9000(F) Total variable cost variance $9000(A) Actual contribution $15000 You have to subtract $5000 of sales volume contribution variance from the budgeted contribution since it is adverse and then you get a standard contribution from actual sales of $15000. Thereafter you add $9000 of sales price variance since it is favourable and then you have to find the missing figure to get actual contribution of $15000, which is an adverse of $9000. Ignore Fixed overhead expenditure variance ($3,000 favourable) since it not part of marginal costing :D hope u understood

yeah, i did thankyou :)

Shazzy: Thank you for your answer, but please do not answer in this forum - it is the Ask the Tutor Forum, and you are not the tutor. (But please do answer in the other F2 forum).

Oh Im so sorry sir.. I really had no idea...wont happen again :D

No problem :-)

Hi sir!! I have question . my question is : a company makes a single product .the following details are from the cost card for the product:direct labour : 10 hrs at£5 per hrs Variable overhead: 10 hrs at£1.5 per hour The actual result for the last period are: 500 units produce labour : 4800 hours Variable overhead: £7700 My question is as far as I know efficiency variance is,actul hrs work & standard hours actual production.... Working is 4800-(500*10)=200 .but this is not correct answer!!!

It is not the correct answer because 200 is the number of hours, and variances are always stated in $'s !! You need to multiply by the standard cost per hour. I do suggest that you watch our free lectures. They are a complete course for Paper F2 and cover everything needed to be able to pass the exam well.

Thanks sir... Still watchig ur variance lectures.... It's great..

You are welcome :-)