ITEM

BUDGETED

ACTUAL

Price

$10 per Kg.

$ 8 per Kg.

Quantity

200 Kgs.

150 Kgs.

Out put

100 Kgs.

80 Kgs.

Fixed Overheard cost

$ 3,000

$ 3,500

Selling Price per unit

$ 50

$ 65

Required:

a) Determine the following variance and advice:

(i) Sales Variance(SV)

(ii) Sales Volume Variance (SVV)

(iii) Sales Price Variance (SPV)

b) Determine the following variance and advice:

(i) Material Price Variance (MPV)

(ii) Fixed Overheard Expenditure Variance (FOEV)