January
	Estimated		Actual
Volume	200000 Units	Cost Per Unit	243000 Units	Cost Per Unit	Variances
Sales	$ 13,800,000	$ 69.00	$ 16,765,000	$ 68.99	$ 2,965,000.00	Favorable
Variable Cost:
Raw Material Cost	$ 5,200,000	$ 26.00	$ 6,198,000	$ 25.51	$ 998,000	Unfavorable
Packaging Cost	$ 1,800,000	$ 9.00	$ 2,189,000	$ 9.01	$ 389,000	Unfavorable
Electricity Cost	$ 1,000,000	$ 5.00	$ 1,197,000	$ 4.93	$ 197,000	Unfavorable
Waste and Other Cost	$ 600,000	$ 3.00	$ 856,000	$ 3.52	$ 256,000	Unfavorable
Total Variable Cost	$ 8,600,000	$ 43.00	$ 10,440,000	$ 42.96	$ 1,840,000	Unfavorable
Contribution Margin	$ 5,200,000	$ 26.00	$ 6,325,000	$ 26.03	$ 1,125,000	Favorable
Fixed Cost:
Salary and Wages Costs	$ 575,000		$ 575,000		$ -	No Change
Fringe Benefits Costs	$ 287,500		$ 287,500		$ -	No Change
Rent Costs	$ 750,000		$ 750,000		$ -	No Change
Insurance Costs	$ 75,000		$ 75,000		$ -	No Change
Depreciation Costs	$ 350,000		$ 350,000		$ -	No Change
Total Fixed Cost	$ 2,037,500		$ 2,037,500		$ -	No Change
Operating Income	$ 3,162,500		$ 4,287,500		$ 1,125,000	Favorable

Using the static budget for January in Question 1 (compared to January actual results), calculate the price variance and volume variance for raw materials.