Reference no: EM132838395

The standard cost of providing a meal in a fast food restaurant is as follows:

Ingredient cost $1.80

Direct labour cost $0.30

Variable overhead cost $0.20

The standard price of the meal is $4.50 and the budgeted sales volume is 4,650 meals each month.

During one month a total of 4,720 meals were sold for $20,768. The actual total variable cost per meal was $2.30.

Problem 1: The sales price variance for the month was:

a) $465 unfavourable

b) $472 favourable

c) $472 unfavourable

d) $465 favourable