ADB Limited uses a standard costing system for all its products. ADB produces and sells dinner plates. Each dinner plate has a standard selling price of £15 and budgeted total sales for June of 4,000 plates. The actual selling price for dinner plates throughout June was £14.50 and the actual number of dinner plates sold was 3,900. The actual variable costs are £7 per dinner plate while the standard variable cost of each plate is £6.75. Based on the above information, what is the sales price variance for dinner plates for June?
A) £975 Favourable
B) £1,000 Favourable
C) £1,950 Unfavourable
D) £2,000 Unfavourable

Question

Quizplus · Accepted Answer

The Answer of ADB Limited uses a standard costing system for all its products. ADB produces and sells dinner plates. Each dinner plate has a standard selling price of £15 and budgeted total sales for June of 4,000 plates. The actual selling price for dinner plates throughout June was £14.50 and the actual number of dinner plates sold was 3,900. The actual variable costs are £7 per dinner plate while the standard variable cost of each plate is £6.75. Based on the above information, what is the sales price variance for dinner plates for June?
A) £975 Favourable
B) £1,000 Favourable
C) £1,950 Unfavourable
D) £2,000 Unfavourable

ADB Limited Uses a Standard Costing System for All Its