Question

$$ \begin{aligned} &\text { A firm uses standard marginal costing. Last period the following results were recorded: }\\ &\begin{array}{ll} \text { Actual sales units } & 5,000 \\ \text { Standard contribution per unit } & \$ 60 \\ \text { Sales price variance } & \$ 5,000 \text { Adverse } \\ \text { Sales volume contribution variance } & \$ 8,000 \text { Favourable } \\ \text { No other variances arose last period. } & \end{array} \end{aligned} $$ $$ \begin{array}{ll} \circ & \$ 295,000 \\ \circ & \$ 305,000 \\ \circ & \$ 303,000 \\ \circ & \$ 297,000 \end{array} $$

   $$
\begin{aligned}
&\text { A firm uses standard marginal costing. Last period the following results were recorded: }\\
&\begin{array}{ll}
\text { Actual sales units } & 5,000 \\
\text { Standard contribution per unit } & \$ 60 \\
\text { Sales price variance } & \$ 5,000 \text { Adverse } \\
\text { Sales volume contribution variance } & \$ 8,000 \text { Favourable } \\
\text { No other variances arose last period. } &
\end{array}
\end{aligned}
$$
$$
\begin{array}{ll}
\circ & \$ 295,000 \\
\circ & \$ 305,000 \\
\circ & \$ 303,000 \\
\circ & \$ 297,000
\end{array}
$$
Show more…
ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
ACCA FMA/FA Foundations in Accountancy-Management Accounting Interactive Text (Practice Revision Kit Not Included)
BPP Learning Media 1st Edition
Chapter 14, Problem 28 ↓

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Step 1

The standard contribution per unit is given as $60. The actual sales units are 5,000. Therefore, the total standard contribution for actual sales is calculated by multiplying these two values: \[ \text{Standard Contribution} = 5,000 \text{ units} \times  Show more…

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$$ \begin{aligned} &\text { A firm uses standard marginal costing. Last period the following results were recorded: }\\ &\begin{array}{ll} \text { Actual sales units } & 5,000 \\ \text { Standard contribution per unit } & \$ 60 \\ \text { Sales price variance } & \$ 5,000 \text { Adverse } \\ \text { Sales volume contribution variance } & \$ 8,000 \text { Favourable } \\ \text { No other variances arose last period. } & \end{array} \end{aligned} $$ $$ \begin{array}{ll} \circ & \$ 295,000 \\ \circ & \$ 305,000 \\ \circ & \$ 303,000 \\ \circ & \$ 297,000 \end{array} $$
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