Following raw materials were purchased and consumed by Cement PLC during the
period:
Following information relates to the sale of fertilizers by ABC PLC during the period:
Material Quantity Actual Price Standard Price
NHK-II 200 tons $380/ton $400/ton
ORG-I 300 tons $660/ton $600/ton
Calculate the Sales price variance and interpret it providing possible explanations for
the variance [10]