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As per the information given in the question Actual Budgeted Units 600 650 Flexible Budget...

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As per the information given in the question Actual Budgeted Units 600 650 Flexible Budget We need to prepare flexible budget for the sales during the month of May In flexible budget rate will be standard rate or budgeted rate and units will be actual units sold So flexible budget Price per unit 800 780 Units 600 Price per unit 780 Actual Quantity 600 units Standard Quantity 650 units Actual price 800 Standard price 780 Sales price variance SQ AP SP Sales volume variance BP AQ BQ Explanation AQ Actual Quantity SQ Standard Quantity AP Actual Price SP Standard Price Sales price variance is positive so it s favorable Sales volume variance is negative so it s unfavorable Final Answer Total Sales C2 B2 B3 C3 Total Sales B2 C2

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