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Kujy Limited's original operating profit budget and actual results for September 2020 are as follows: Original budget Actual results Output/sales (units) 2,000 1,900 Sales 642,000
Kujy Limited's original operating profit budget and actual results for September 2020 are as follows:
Original budget | Actual results | |
Output/sales (units) | 2,000 | 1,900 |
Sales | 642,000 | 609,500 |
Raw materials | (300,000) | (286,234) |
Labour | (180,000) | (172,000) |
Fixed overhead | (50,000) | (52,000) |
Operating profit | 112,000 | 99,266 |
Calculate the Direct (i.e. raw) materials variance. Show your answer as positive if the variance is favourable, and negative if the variance is adverse.
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