Allard Manufacturing Company established the following standard price and cost data. Sales price.......................................$ 8.70.........per unit Variable manufacturing

Question:

Allard Manufacturing Company established the following standard price and cost data.
Sales price.......................................$ 8.70.........per unit
Variable manufacturing cost ..................$ 3.30.........per unit
Fixed manufacturing cost........................$ 2,700..........total
Fixed selling and administrative cost............$ 800..........total
Allard planned to produce and sell 2,000 units. Actual production and sales amounted to 2,200 units.
Assume that the actual sales price is $8.45 per unit and that the actual variable cost is $3.45 per unit. The actual fixed manufacturing cost is $2,500, and the actual selling and administrative costs are $825.
Required
a. & b.
Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Sales ____ (Unfavorable)
Variable manufacturing ______ (Unfavorable)
Contribution margin______ (Unfavorable)
Fixed manufacturing = 200 (Favorable)
Fixed selling and admin cost = 25 (Unfavorable)
Net income (loss) ______ (Unfavorable)
I figured some of the answers out but I can't figure out the amounts where the blanks are
Contribution Margin
Contribution margin is an important element of cost volume profit analysis that managers carry out to assess the maximum number of units that are required to be at the breakeven point. Contribution margin is the profit before fixed cost and taxes...
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental Managerial Accounting Concepts

ISBN: 978-0078025655

7th edition

Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Old

Question Posted: