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View Full Version : Variance Flexing (reconciling)


Mufas
Jun 29, 2011, 12:07 PM
http://i51.tinypic.com/5wi9f9.jpg

Qs 6) Expected profit : 260000 100% right

Question 7) Not sure!
I got Total Material Variance = 0
Total Labour = £18000 FAV

Question 8) 100% right
Sales price = £36000 FAV
Sales Volume = £120000 ADV

Q9) This question doesn't balance when I add FAV and subtract ADV!!
It should Equal to expected Profit, but it doesn't.

Budgeted Profit :260000
+18000
+36000
-120000
=194000

So it isn't 258000! WHy? I don't know where I went wrong!