Baird Publications established the following standard price and costs for a hardcover picture book that the compa produces. Standard price and variable costs. Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $ 36.70 8.20 4.40 5.90 7.10 $ 131,000 47,000 Assume that Baird actually produced and sold 20,000 books. The actual sales price and costs incurred follow. Actual price and variable costs Materials cost sales price Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Required $ 35.70 8.40 4.30 5.95 6.90 $ 116,000 53,000 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). Answer is complete but not entirely correct. Flexible Budget Variances S 20,000 U Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income (4,000) U 2,000 F (1,000) U 4,000 F 9 U 15,000 F (6,000) U S OXU 11669 300
Baird Publications established the following standard price and costs for a hardcover picture book that the compa produces. Standard price and variable costs. Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $ 36.70 8.20 4.40 5.90 7.10 $ 131,000 47,000 Assume that Baird actually produced and sold 20,000 books. The actual sales price and costs incurred follow. Actual price and variable costs Materials cost sales price Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Required $ 35.70 8.40 4.30 5.95 6.90 $ 116,000 53,000 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). Answer is complete but not entirely correct. Flexible Budget Variances S 20,000 U Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general, and administrative costs Contribution margin Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income (4,000) U 2,000 F (1,000) U 4,000 F 9 U 15,000 F (6,000) U S OXU 11669 300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Rahul
Transcribed Image Text:Baird 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
Selling, general, and administrative
$ 36.70
8.20
4.40
5.90
7.10
$ 131,000
47,000
Assume that Baird actually produced and sold 20,000 books. The actual sales price and costs incurred follow.
Actual price and variable costs.
Materials cost
sales price
Labor cost
Overhead cost
Selling, general, and administrative costs
Actual fixed costs
Manufacturing overhead
Selling, general, and administrative
Required
$ 35.70
8.40
4.30
5.95
6.90
$ 116,000
53,000
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).
Answer is complete but not entirely correct.
Flexible Budget
Variances
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Selling, general, and administrative costs
Contribution margin
Fixed costs
Manufacturing overhead
Selling, general, and administrative costs
Net income
S 20,000 U
(4,000) U
2,000 F
(1,000) U
4,000
F
9XU
15,000 F
(6,000) U
S
OXU
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