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GH manufactures a product using skilled labour and high quality materials. The company operates a standard costing system and a just-in-time (JIT) purchasing and production system. The standard selling price and variable costs for one unit of the product are as follows:
Prepare a statement that reconciles the budgeted contribution with the actual contribution for October. Your statement should show the variances in as much detail as possible.
What was the actual contribution for October?
Suggested Answer: B
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22 comments · newest first
AL
Alva
11 months ago
Not sure about those figures, they seem a bit high.
IV
Ivette
11 months ago
I agree, $1,414,000 sounds about right!
GA
Gail
11 months ago
Wait, how did you get that number? Seems off to me.
FL
Florinda
12 months ago
I think it's definitely around $1,494,000.
AL
Allene
12 months ago
Actual contribution should be calculated based on sales and costs.
EN
Ena
1 year ago
I’m leaning towards option B, $1,414,000, but I need to double-check my calculations for the variable costs and the contribution margin.
TW
Twana
1 year ago
I feel like I’ve seen a question with similar figures before, and I think I got the actual contribution as $1,494,000, but I’m not entirely confident.
RO
Rozella
1 year ago
I think the actual contribution should be calculated by taking the budgeted contribution and adjusting for any variances, but I’m a bit confused about how to break down those variances.
DE
Delfina
1 year ago
I remember we practiced a similar question on variances last week, but I’m not sure about the exact calculations for the actual contribution.
FR
Franklyn
1 year ago
I feel pretty confident about this one. Variance analysis is one of my stronger areas, and the information provided seems pretty clear. I'll just need to plug the numbers into the right formulas and I should be able to get a detailed reconciliation of the budgeted and actual contribution.
IZ
Izetta
1 year ago
This looks like a tricky one. Variance analysis can get pretty complex, especially with the JIT system in place. I'll need to be really careful in my calculations to make sure I don't miss anything. Might be a good idea to sketch out a template to organize the different variances.
LA
Lanie
1 year ago
Okay, I think I've got this. I'll start by calculating the actual contribution based on the information provided, then compare that to the budgeted contribution to find the total variance. From there, I can break down the variance into the different components. Should be straightforward enough.
RO
Rosina
1 year ago
Hmm, I'm a bit unsure about how to approach this. I know I need to reconcile the budgeted and actual contribution, but I'm not sure how to calculate the different variances. I'll need to review my notes on standard costing and variance analysis.
WA
Wai
1 year ago
This looks like a standard variance analysis question. I'll need to calculate the variances between the budgeted and actual contribution, breaking it down into the different components like sales volume, sales price, and variable costs.
FI
Filiberto
1 year ago
I'm feeling pretty confident about this one. The key is using the right actions in a cloud flow to automate the entire process from start to finish.
KI
King
1 year ago
Hmm, this is a pretty standard forecasting problem, but the seasonal variations add an extra layer of complexity. I'll need to be really careful in applying the additive model correctly. I'm confident I can work through this, but I'll definitely double-check my work before submitting the final answer.
AN
Anglea
1 year ago
Hmm, I'm a bit unsure on this one. Could it also be related to latency or delay? I'll have to think it through carefully before answering.
SK
Skye
1 year ago
I'm not sure about the messaging service option. That seems more focused on handling asynchronous communication rather than persistent data storage and management.
TE
Tess
2 years ago
I calculated the actual contribution to be $1,414,000. This is based on the variance analysis provided in the question.
TA
Tammy
2 years ago
I believe the actual contribution for October can be calculated based on the variances in the standard costing system and JIT purchasing.
RE
Reena
2 years ago
Yes, we need to reconcile the budgeted contribution with the actual contribution.
MO
Mona
2 years ago
I think the question is asking us to prepare a statement that shows the variances in contribution for October.