The standard cost of providing a meal in a fast food restaurant is as follows:

Ingredient cost $1.80

Direct labour cost $0.30

Variable overhead cost $0.20

The standard price of the meal is $4.50 and the budgeted sales volume is 4,650 meals each month.

During one month a total of 4,720 meals were sold for $20,768. The actual total variable

cost per meal was $2.30.

The sales price variance for the month was:

Practice Question 1 options:

a)$465 unfavourable

b)$472 favourable

c)$472 unfavourable

d)$465 favourable