2. A food product company, manufacturer two products: 'Petrol' and Oil'. The Information related to Sales during the last period is as follows:

Petrol Oil

Budgeted Sales 8, 000 4 000

Actual Sales 6, 000 7,000

Standard Costs and revenues per unit of Petrol and Oil are as follows:

Petrol Oil

Sales 18 per Unit 10 liters 600 SAR

Direct Material 5 Per Unit 10 liters 200 SAR

Direct Labor 2 Per Unit 10 liters 100 SAR

Variable Overhead 3 Per Unit 10 liters 50 SAR

Fixed Overhead 2 Per unit 10 liters 20 SAR

You are required to find:

(a) Sales Volume Variance where the company is using Marginal Costing system

(b) Sales Volume Variance where the company is using Absorption Costing system