Essay

Sales margin/contributions variances | | | | | | | actual sales made this period | | | standard mix proportion is: | | | actual sales at standard mix | | | | | | | | | | | | | budgeted sales | | | | budgeted sales margin | | | =budgeted sales revenue | | | | | | | | | | | | | actual sales | | | | actual sales margin | | | | =actual sales revenue | | | | | | | | | | | | | * * total sales margin variance | | | | | | | | | | | | | budgeted sales | | | | budgeted sales contribution | | | =budgeted total contribution | | | | | | | | | | | | | actual sales | | | | actual contribution | | | | =actual total contribution | | | | | | | | | | | | | * * total sales contribution variance | |

Sales margin variances * sales margin price variance
(standard sales margin-actual sales margin)x actual sales

* sales margin mix variance
(actual sales at standard mix-actual sales)x budgeted sales margin

* sales margin volume variance
(actual sales at standard mix-budgeted sales)x budgeted sales margin

Check:
Sales margin price variance
Sales margin mix variance
Sales margin volume variance
=Total sales margin variance

Sales contribution variance * sales contribution price
(standard sales contribution-actual sales contribution)x actual sales

* sales contribution mix
(actual sales at standard mix-actual sales)x standard sales contribution

* sales contribution volume
(actual sales at standard mix-budgeted sales)x standard sales contribution

Check:
Sales contribution price variance
Sales contribution mix variance
Sales contribution volume variance
=Total sales contribution variance

Material yield/mix & price variances
Standard material cost per unit
No. of unit produced this period
Standard material cost of output produced
Actual material costs incurred