ICAEW BIP · Chapter 9 · Question 11 of 13
A company's budgeted profit for a period was £84,000. The operating statement shows total favourable variances of £15,300 and total adverse variances of £21,450. What was the actual profit?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) £77,850
Explanation
Actual profit = budgeted profit + favourable variances - adverse variances = £84,000 + £15,300 - £21,450 = £77,850. Favourable variances increase profit and adverse variances reduce it.
More Standard costing and variance analysis MCQs
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