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BCD Limited Uses a Standard Costing System for All Its

Question 36

Multiple Choice

BCD Limited uses a standard costing system for all its products. BCD produces and sells footballs which it sells to local league football teams. Each football has a standard variable cost of £10. The standard selling price of each football is £35 and budgeted total sales for October were 800 footballs. The actual selling price for footballs throughout October was £37.50 and the actual number of footballs sold in the month was 850. The actual variable costs in October were £11.50 per football. Based on the above information, what is the sales price variance for footballs for October?


A) £1,250 Favourable
B) £1,275 Favourable
C) £2,000 Unfavourable
D) £2,125 Unfavourable

Correct Answer:

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