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Budget

sales/production 850
selling price 18



quantity total quantity price total cost
direct material 1.5 pounds 1275 6.5 8287.5
direct labour 0.3 hours 255 12 3060

fixed costs 2750

Actual

sales/production 950
selling price 19



quantity total quantity price
direct material pounds 1500 6 9000
direct labour hours 275 13 3575

fixed costs 3000

, actual flex
revenue 18050 950 17100
direct material 9000 262.5 9262.5
direct labour 3575 -155 3420
fixed costs 3000 -250 2750
operating income 2475 807.5 1667.5 465
1272.5


static Budget variance 1272.5 F
sales volume variance 465 F
flexible budget variance 807.5 F
selling price variance 950 F
direct material flexible budget variance 262.5 F
direct material price variance 750 F
direct material efficiency variance -487.5 U
direct labour flexible budget variance -155 U
direct labour price variance -275 U
direct labour efficiency variance 120 F
fixed costs variance -250 U