Gibson manufacturing established the following standard price and cost data

Sales price $8.90 per unit

Variable manufacturing cost $4.00 per unit

fixed manufacturing cost $2,400 total

fixed selling and administrative cost $900 total

Gibson planned to produce and sell 2,600 units. Actual production and sales amounted to 2,700 units.

Assume that the actual sales price is $8.65 per unit and that actual variable cost is $4.30 per unit. The actual fixed manufacturing cost is $1900 and the actual selling and administrative cost are $935.

Required

a&b Determine the flexible budget variance and classify the variances by selecting favorable (f) or unfavorable (u) Select "none" if there is no effect (i.e zero variance)

Answer rating: 100% (QA)

To determine the flexible budget variance we need to compare the actual results with the flexible bu... View the full answer