Tutorial Task 3

SAS co. operates a marginal costing system and sells two products Handbags (H) and Perfumes (P). The standard contribution per unit for each product and the budgeted levels of production and sales for each product for the last period are as follows: Product H P Standard contribution per unit 30 55 Budgeted production and sales (units) 2500 1250 The actual contribution per unit for each product and the actual levels of production and sales for each product for the last period are as follows: Product H P Actual contribution per unit 35 60 Actual production and sales (units) 3000 1000

Required: Calculate the following variances for the last period: 1) sales mix contribution variance 2) sales quantity contribution variance