Benson Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.30 Materials cost 8.80 Labor cost 4.10 Overhead cost 6.10 Selling, general, and administrative costs 6.80 Planned fixed costs Manufacturing overhead $ 132,000 Selling, general, and administrative 45,000 Assume that Benson actually produced and sold 32,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.30 Materials cost 9.00 Labor cost 4.00 Overhead cost 6.15 Selling, general, and administrative costs 6.60 Actual fixed costs Manufacturing overhead $ 117,000 Selling, general, and administrative 51,000 Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).)
Benson Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.30 Materials cost 8.80 Labor cost 4.10 Overhead cost 6.10 Selling, general, and administrative costs 6.80 Planned fixed costs Manufacturing overhead $ 132,000 Selling, general, and administrative 45,000 Assume that Benson actually produced and sold 32,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.30 Materials cost 9.00 Labor cost 4.00 Overhead cost 6.15 Selling, general, and administrative costs 6.60 Actual fixed costs Manufacturing overhead $ 117,000 Selling, general, and administrative 51,000 Required a. & b. Determine the flexible budget variances and also Indicate whether each variance is 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
Related questions
Question
Benson Publications established the following standard price and costs for a hardcover picture book that the company produces.
Standard price and variable costs | |||
Sales price | $ | 36.30 | |
Materials cost | 8.80 | ||
Labor cost | 4.10 | ||
6.10 | |||
Selling, general, and administrative costs | 6.80 | ||
Planned fixed costs | |||
Manufacturing overhead | $ | 132,000 | |
Selling, general, and administrative | 45,000 | ||
Assume that Benson actually produced and sold 32,000 books. The actual sales price and costs incurred follow:
Actual price and variable costs | |||
Sales price | $ | 35.30 | |
Materials cost | 9.00 | ||
Labor cost | 4.00 | ||
Overhead cost | 6.15 | ||
Selling, general, and administrative costs | 6.60 | ||
Actual fixed costs | |||
Manufacturing overhead | $ | 117,000 | |
Selling, general, and administrative | 51,000 | ||
Required
a. & b. Determine the flexible
![Answer is complete but not entirely correct.
Flexible Budget
Variances
OXU
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Variable selling, general, and administrative costs
Contribution margin
Fixed costs
Manufacturing overhead
Selling, general, and administrative costs
Net income
$
(6,400)
3,200
(1,000)
(33,050)
15,000
(6,000)
$ (16,950)
U
CTC
6,400 F
U
X
F
F
ככ
U
333
33](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe9c485f-7800-42c6-9e2a-230c778c41ae%2F545299bf-3ad0-411e-b79c-3b9260b0ad65%2Focjos2g_processed.png&w=3840&q=75)
Transcribed Image Text:Answer is complete but not entirely correct.
Flexible Budget
Variances
OXU
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Variable selling, general, and administrative costs
Contribution margin
Fixed costs
Manufacturing overhead
Selling, general, and administrative costs
Net income
$
(6,400)
3,200
(1,000)
(33,050)
15,000
(6,000)
$ (16,950)
U
CTC
6,400 F
U
X
F
F
ככ
U
333
33
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