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    Mufas Posts: 1, Reputation: 1
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    #1

    Jun 29, 2011, 12:07 PM
    Variance Flexing (reconciling)


    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!

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