What is the cost price variance? * Sample format: 111,111 F or 111,111 U National Co. produces and sells cellular phone blaster, a gadget which explodes when activated with a remote commander. This is used by cell phone owners when their unit is snatched from them or is taken by thieves. The static master budget and the actual results of operations for the month of June are as follows: Sales Cost of goods sold Gross profit Budget 8,000 units P 800,000 480,000 P320,000 Actual 9,600 units P1,056,000 556,800 P.499.200 Management wants an explantation of the favorable gross profit variance of P 179,200 (actual gross profit of P499,200 less budgeted gross profit of P320,000).