Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces.
Standard price and variable costs Sales price $ 90.00 Materials cost 18.00 Labor cost 9.00 Overhead cost 12.60 Selling, general, and administrative costs 14.40 Planned fixed costs Manufacturing overhead $ 270,000 Selling, general, and administrative 108,000
Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow.
Actual price and variable costs Sales price $ 87.00 Materials cost 18.40 Labor cost 8.80 Overhead cost 12.70 Selling, general, and administrative costs 14.00 Actual fixed costs Manufacturing overhead $ 250,000 Selling, general, and administrative 116,000
Required
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Flexible Budget Variances Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income
Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 90.00 | |
| Materials cost | 18.00 | ||
| Labor cost | 9.00 | ||
| Overhead cost | 12.60 | ||
| Selling, general, and administrative costs | 14.40 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 270,000 | |
| Selling, general, and administrative | 108,000 | ||
Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow.
| Actual price and variable costs | |||
| Sales price | $ | 87.00 | |
| Materials cost | 18.40 | ||
| Labor cost | 8.80 | ||
| Overhead cost | 12.70 | ||
| Selling, general, and administrative costs | 14.00 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 250,000 | |
| Selling, general, and administrative | 116,000 | ||
Required
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
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Related questions
Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 36.90 | |
| Materials cost | 8.80 | ||
| Labor cost | 4.50 | ||
| Overhead cost | 5.50 | ||
| Selling, general, and administrative costs | 6.40 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 126,000 | |
| Selling, general, and administrative | 47,000 | ||
Assume that Thornton actually produced and sold 33,000 books. The actual sales price and costs incurred follow:
| Actual price and variable costs | |||
| Sales price | $ | 35.90 | |
| Materials cost | 9.00 | ||
| Labor cost | 4.40 | ||
| Overhead cost | 5.55 | ||
| Selling, general, and administrative costs | 6.20 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 111,000 | |
| Selling, general, and administrative | 53,000 | ||
Required
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Thornton Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 36.60 | |
| Materials cost | 8.90 | ||
| Labor cost | 3.90 | ||
| Overhead cost | 5.40 | ||
| Selling, general, and administrative costs | 7.10 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 131,000 | |
| Selling, general, and administrative | 51,000 | ||
Assume that Thornton actually produced and sold 33,000 books. The actual sales price and costs incurred follow:
| Actual price and variable costs | |||
| Sales price | $ | 35.60 | |
| Materials cost | 9.10 | ||
| Labor cost | 3.80 | ||
| Overhead cost | 5.45 | ||
| Selling, general, and administrative costs | 6.90 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 116,000 | |
| Selling, general, and administrative | 57,000 | ||
Required
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
