BBP revision kit – Q275 – Clear Co – variances

Hi,

I am confused on question Q275 in the BPP revision kit, on the (c) part of the question, they have asked us use relevant calculations to comment on the sales performance of Clear Co.

There is a working for selling price variance = (actual price – selling price) x actual qty

I can get to the answer of $413,000 for the “RLE treatment” (2900 – 3000) x 4130 = $413,000 (a). However I don’t understand how it’s been calculated for the “ICL treatment”, I would have thought it was (3400 – 3650) x 960 = $240,000 but the answer has been given as $900,000.

Am I getting it wrong?

Thanks 🙂