P Limited has the following data relating to its budgeted sales for October:
|
Budgeted sales |
£100 000 |
|
Budgeted selling price per unit |
£8.00 |
|
Budgeted contribution per unit |
£4.00 |
|
Budgeted profit per unit |
£2.50 |
During October actual sales were 11 000 units for a sales revenue of £99 000.
P Limited uses an absorption costing system. The sales variances reported for October were:
|
Price |
Volume |
|
|
A |
£11000 F |
£3 750 A |
|
B |
£11 000 F |
£6 000 A |
|
C |
£11 000 A |
£6 000 A |
|
D |
£12500 F |
£12000 A |
|
E |
£12500 A |
£12000 A |