Mathematics · Cost Accounting
AD Co manufactures and sells a single product, E, and uses a standard absorption costing system. Standard cost and selling price details per unit are: - Variable cost: $8 - Fixed cost: $2 - Standard profit: $5 - Standard selling price: $15 The sales volume variance reported for the last period was $9,000 adverse. If AD Co switches to standard marginal costing, what would be the correct sales volume variance to be shown in the operating statement?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1$6,428 (Adverse)
- 2$6,428 (Favourable)
- 3$12,600 (Favourable)
- 4$12,600 (Adverse)✓
Correct answer
$12,600 (Adverse)
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