Hello Gabriela,
You need to find the value of ingredients in the flexible budget. The important info is that "the actual selling price per meal remained as expected". This means that the Sales value in the flexible budget will be 64 000€, the same as in the Actual Budget. From here, you can find that the value of Ingredients = 23 000 * 64 000/80 000 = 18 400€
Because ingredients usage variance was 0€, ingredients price variance = 18 400 - 28 000 = 9 600€ Unfavourable
Good study!
You need to find the value of ingredients in the flexible budget. The important info is that "the actual selling price per meal remained as expected". This means that the Sales value in the flexible budget will be 64 000€, the same as in the Actual Budget. From here, you can find that the value of Ingredients = 23 000 * 64 000/80 000 = 18 400€
Because ingredients usage variance was 0€, ingredients price variance = 18 400 - 28 000 = 9 600€ Unfavourable
Good study!