Wildberry uses standard costing and variance analysis to evaluate their financials.

The standard cost of making each unit in 2019 is as follows:

per unit

Direct material (plastic)

(0.5kg per unit @ 4 per kg)

2

Direct labour

(0.25 hour per unit @ 12 per hour)

3

Budgeted sales and production in 2019 were 1,000,000 units, budgeted sales price was 11 per unit and the budgeted fixed overheads was estimated at 3,400,000 per annum. Budgeted profit was calculated by the above figures as 2,600,000.

Actual data for 2019 has been released as follows:

Sales and production units

1,100,000 units

Material Cost

0.55 kg per unit @ 3.50 per kg (605,000 kg in total)

Labour Cost

0.3 hours per unit @ 12.50 per hour (330,000 hours in total)

Fixed overheads

3,450,000

Sales price

10.50 per unit

What was theSale PriceandSales Volumevariances?

Select one:

a.Sales Price Variance 500,000A and Sales Volume Variance 1,100,000F

b.Sales Price Variance 550,000F and Sales Volume Variance 1,100,000F

c.Sales Price Variance 550,000F and Sales Volume Variance 100,000F

d.Sales Price Variance 550,000A and Sales Volume Variance 600,000F

Clear my choice