A company uses standard marginal costing. Last month the standard contribution on actual sales was $10,000 and the following variances arose:
$
Total variable costs variance 2,000 Adverse
Sales price variance 500 Favourable
Sales volume contribution variance 1,000 Adverse
What was the actual contribution for last month? A $7,000 B $7,500 C $8,000 D $8,500
The correct answer was D ($8,500)
A company uses standard marginal costing. Last month, when all sales were at the standard selling price, the standard contribution from actual sales was $50,000 and the following variances arose:
$
Total variable costs variance 3,500 Adverse
Total fixed costs variance 1,000 Favourable
Salesvolume contribution variance 2,000 Favourable
What was the actual contribution for last month?
A $46,500
B $47,500
C $48,500
D $49,500
The correct answer was A ($46,500)