- 15 Marks
MA – Mar 2024 – L2 – Q3a – Standard costing and variance analysis
This question calculates the sales price, volume, quantity, and mix variances for three products sold by Manjo Plc for the month of January.
Question
The following information relates to the estimate and actual results of Manjo Plc for the month of January:
| Particulars | KO | TO | KA |
|---|---|---|---|
| Budgeted sales (units) | 36,000 | 27,000 | 18,000 |
| Standard selling price (GH¢) | 15 | 10 | 12.5 |
| Standard variable cost (GH¢) | 8 | 4 | 7.5 |
| Actual sales (units) | 30,000 | 35,000 | 25,000 |
| Actual sales (GH¢) | 420,000 | 367,500 | 325,000 |
Required:
i) Calculate the sales price variance. (3 marks)
ii) Calculate the sales volume variance. (3 marks)
iii) Analyse the sales volume variance into:
- Sales quantity variance. (5 marks)
- Sales mix variance. (4 marks)
Find Related Questions by Tags, levels, etc.
- Tags: mix variance, Price Variance, Quantity Variance, Sales Variance, Volume Variance
- Level: Level 2
- Topic: Standard Costing and Variance Analysis
- Series: MAR 2024
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