Rundle Publications established the following standard price and costs for a hardcover picture book that the...
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Rundle Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Manufacturing overhead Selling, general, and administrative Assume that Rundle actually produced and sold 21,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price Materials cost Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs $ 37.00 9.00 3.90 Manufacturing overhead Selling, general, and administrative costs Net income 6.30 6.90 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Flexible Budget Variances $ 126,000 52,000 $36.00 9.20 3.80 6.35 6.70 $ 111,000 58,000 Rundle Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Manufacturing overhead Selling, general, and administrative Assume that Rundle actually produced and sold 21,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price Materials cost Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs $ 37.00 9.00 3.90 Manufacturing overhead Selling, general, and administrative costs Net income 6.30 6.90 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Flexible Budget Variances $ 126,000 52,000 $36.00 9.20 3.80 6.35 6.70 $ 111,000 58,000
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To calculate the flexible budget variances we need to compare the actual results with the flexible budget which is typically based on the actual level of output at the standard costs The formula for e... View the full answer
Related Book For
Fundamental Managerial Accounting Concepts
ISBN: 978-0078110894
6th Edition
Authors: Edmonds, Tsay, olds
Posted Date:
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