ACCA MA Syllabus E. Standard Costing - Reconcile profits under absorption - Notes 1 / 2
Operating Statement for the period ending …….(under Absorption Costing)
| $ | ||||
| budgeted profit | x | |||
| sales volume variance | x | f | ||
| sales price variance | (x) | a | ||
| ---- | ||||
| cost variances | $f | $a | ||
| materials price | x | |||
| material usage | x | |||
| labour rate | x | |||
| labour idle | x | |||
| labour efficiency | x | |||
| variable overheads expenditure | x | |||
| variable overheads efficiency | x | |||
| fixed overheads expenditure | x | |||
| fixed overheads efficiency | x | |||
| fixed overheads capacity | x | |||
| ---- | ---- | |||
| x | x | (x) | a | |
| ---- | ||||
| actual profit | x | |||
| === |
| Budgeted profit on budgeted sales | $100,000 |
|---|---|
| Sales volume variance (F) | $20,000 |
| Budgeted profit on actual sales | $120,000 |
| Sales price variance (A) | -$10,000 |
| All variable variances (F) | $30,000 |
| Fixed production volume variance (A) | -$5,000 |
| Actual profit | ? |
Solution
= 120,000 - 10,000 + 30,000 - 5,000 = $135,000