Question: Using the figures shown in Activity below, what is the sales price variance for June?

Show that

                                                                             Budget                                          Actual

Output                                                               11,00 units                                     1,150 units

(Production and sales)

                                                                               £                                                         £               

Sales revenue                                                   110,000                                              113,500

Raw materials                                                   (44,000) (44,000 meters)                    (46,300) (46,300 meters)       

Labour                                                              (22,000) (2,750 hours)                        (23,200) (2,960 hours)

Fixed overheads                                               (20,000)                                               (19,300)      

Operating profit                                                 24,000                                                 24,700   

Try flexing the june budget, comparing it with the original june budget, and so find the sales volume variance.