Baird Manufacturing Company established the following standard price and cost data: $ 8.10 per unit $ 3.60 per unit $2,800 total $ 700 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Baird planned to produce and sell 2,000 units. Actual production and sales amounted to 2.300 units. Assume that the actual sales price is $7.85 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $2,100, and the actual selling and administrative costs are $735. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Baird Manufacturing Company established the following standard price and cost data: $ 8.10 per unit $ 3.60 per unit $2,800 total $ 700 total Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Baird planned to produce and sell 2,000 units. Actual production and sales amounted to 2.300 units. Assume that the actual sales price is $7.85 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing cost is $2,100, and the actual selling and administrative costs are $735. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Sales
Variable manufacturing
Contribution margin
Fixed manufacturing
Fixed selling and administrative cost
Net income (loss)
Flexible Budget
Variances
U
U
F
U
U
Transcribed Image Text:Baird Manufacturing Company established the following standard price and cost data:
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative cost
$ 8.10 per unit
$ 3.60 per unit
$2,800 total
$ 700 total
Baird planned to produce and sell 2,000 units. Actual production and sales amounted to 2,300 units.
Assume that the actual sales price is $7.85 per unit and that the actual variable cost is $3.90 per unit. The actual fixed manufacturing
cost is $2,100, and the actual selling and administrative costs are $735.
Required
a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if
there is no effect (i.e., zero variance).)
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