A company sets its sales price standard at ₦2,800 per unit with a budgeted sales volume of 3,500 units. Actual sales were 3,200 units at ₦2,950 per unit. What is the Sales Price Variance?

Sales Price Variance = (Actual Price – Standard Price) × Actual Volume Sold = (₦2,950 – ₦2,800) × 3,200 = ₦150 × 3,200 = ₦480,000 Favourable. The variance is favourable because the company sold at a price higher than the standard. Note that the Sales Volume Variance is calculated separately using the difference in quantities at standard margin.