a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements,assuming production volumes of 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volumeis actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.,zero variance).)Master BudgetFlexible BudgetsVolume VariancesNumber of units21,00020,00022,000Variable manufacturing costsFixed costs Walton Publications established the following standard price and costs for a hardcover picture book that the company produces.Standard price and variable costsSales priceMaterials CostLabor cost37.008.103.80Overhead cost5.80Selling, general, and administrative costsPlanned fixed costsManufacturing overheadSelling, general, and administrative6.90$132,00051,000Walton planned to make and sell 21,000 copies of the book.Required:a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements,assuming production volumes of 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volumeis actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e.,zero variance).)

Flexible budget is always prepared for actual units Formula = Actual units * standard variable…

cations established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costa Sales price Materials cost Labor cost $ 37.00 8.10 3.80 5.80 6.90 Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $132,000 51,000 Walton planned to make and sell 21,000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volum is actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zero variance).)

cations established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costa Sales price Materials cost Labor cost $ 37.00 8.10 3.80 5.80 6.90 Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative $132,000 51,000 Walton planned to make and sell 21,000 copies of the book. Required: a. - d. Prepare the pro forma income statement that would appear in the master budget and also flexible budget income statements, assuming production volumes of 20,000 and 22,000 units. Determine the sales and variable cost volume variances, assuming volum is actually 22,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (l.e., zero variance).)

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter11: Differential Analysis And Product Pricing

Section: Chapter Questions

Problem 16E

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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)…