ABC & Co. manufactures and sells two products M & N. The following data are available in respect of the products for the month of July. The company operates a budgetary control system.
Budgeted sales
|
Product |
Quantity Units |
Budgeted Sales |
Value Rs. |
|
M N |
500 1,000 |
10 |
5,000 |
|
10,000 |
Actual sales
|
M |
400 |
5 |
2,000 |
|
N |
500 |
4 |
2,000 |
|
4,000 |
Budgeted cost per unit of each product:
M – Rs. 6
N – Rs. 3
You are required to calculate all the sales variances.