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The planning budget's assumption of $2 variable fuel cost per gallon sold was based on the following assumptions: 1. $2 per gallon of fuel

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The planning budget's assumption of $2 variable fuel cost per gallon sold was based on the following assumptions: 1. $2 per gallon of fuel purchased 2. 1 gallon of fuel used per gallon sold Actual sales during the month were 30,000 gallons, but only 26,000 gallons of fuel were consumed. Actual cost of fuel during the month was $2.50 per gallon, and actual purchases were 40,000 gallons. 1. What are the standard price and standard quantity for fuel? 2. What are the purchase price, price, and quantity variances for fuel?

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