Good evening 🙂 Can you please help me with this question?a brief explanation will do. i want to do it on my own but in kaplan textbook am having confusion..the questions are different ! 🙁 Please
Here goes : A company has recorded the following variances for a period : Sales variance volume $10,000 adverse Sales price variance $5,000 favourable Total cost variance $12,000 adverse Standard profit on actual sales for the period was $120,000. What was the fixed budget profit for the period? >$110,000 >$130,000 >$103,000 >$137,000 correct answer is : $130,000 Thanks
The question asks for the budget profit. Given that the difference between the standard profit on actual sales and the budget profit is the sales volume variance, the budget profit must be 120,000 + 10,000 = 130,000