Problem 15 - 20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4

Adams Publications established the following standard price and costs for a hardcover picture book that the company produces

Problem 15-20A (Algo) Determining sales and variable cost volume variances LO 15-2, 15-3, 15-4 Adams 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 Manufacturing overhead Sellint. General, and administrative $36.40 8.se 3.10 5.se 7.00 $129.000 $1,000 Adams planned to make and sell 36,000 copies of the book. Required: 0.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget Income statements, assuming production volumes of 35.000 and 37,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 37000 units indicate whether the variances are favorable (F) or unfavorable (U) (Select "None if there is no effectie zero variance)) Volume Varances Master Budget 36.000 Flexible Budgets 35,000 37,000 Number of units Variable manufacturing costs Adams planned to make and sell 36,000 copies of the book, Required: 2.-d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 35,000 and 37000 units. Determine the sales and variable cost volume varlances, assuming volume is actually 37000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" If there is no effect (I... zero variance)) Volume Variances Master Budget 36,000 Floxible Budgets 35,000 37,000 Number of units Variable manufacturing costs Fixed costs