Good Afternoon everybody,

Continuing on my topic from the weekend. My biggest nemesis in this fixed variances busines is the section called reconciling contributions.

I have this horrible feeling I will get this in the exam, and would hate to fail on that: Example

A company uses standard marginal costing. Last month the standard contribution on actual sales was $10000 and the following variances arose.

total variable costs variance - 2000A

Sales price variance - 500F

Sales volume contribution variance - 1000 A

What was the actual contribution for last month?

10000+500-2000=8500

I am really not sure how to tackle this sort of questions. The explanation in the BPP book refers to operating statement where lines are either already included or not in the figure....does it mean that there is a fixed way how to do operating statement..... and I have to learn it line by line.......I only have two examples in my book and there is nothing on the subject (variances x operating statements) in C. Drury book.

It is probably something trivial, but my brain is just not understanding it...

Thank you in advance

BJA