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 volume contribution variance for the month was:

Practice Question 16 options:

a)$147 unfavourable

b)$147 favourable

c)$154 favourable

d)$154 unfavourable