Price per unit 800 780 As per the information given in the question Actual Budgeted Units 600 650 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 Flexible Budget Actual Quantity = 600 units Standard Quantity = 650 units Actual price $800 Units 600 Price per unit 780 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