I'll take a look! Your screenshot looks right, you have a price set for the variations.
What theme are you using? I wonder ... if you used Wootique theme (or another of the free Woothemes Woocommerce themes) if this problem would still be there.
How do I know this stuff? I'm just figuring it out now ... I've only been experimenting with woocommerce for a little while, but I intend to know it well for a project I'm working on, and in general because it seems to be the first ecommerce plugin for WordPress that I've found works well without extensive coding customization.