£ £ £

Budgeted sales (£70 x 1,050,000

15,000)
Budgeted cost of 840,000
sales (£56 x 15,000)
Budgeted profit 210,000
Sales volume profit 28,000(F)
variance
Budgeted profit from 238,000
actual sales
Variances: (F) (A)
Sales price 51,000
Direct material usage 15,000
Direct material price 24,400
Direct labor 13,000
efficiency
Direct labor rate 9,680
Variable overhead 5,200
efficiency
Variable overhead 1,200
rate
42,600 76,880 34,280 (A)
Actual contribution 203,720
Budget 100,000
Expenditure variance 8,000 Adverse
Actual fixed 108,000
overhead
Actual profit 95,720