Question: Using the figures shown in Activity below, what was the direct materials 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.