Exercise 8-5A (Algo) Determining flexible budget variances LO 8-4 Perez Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost Perez planned to produce and sell 2,800 units. Actual production and sales amounted to 3,000 units. Assume that the actual sales price is $7.70 per unit and that the actual variable cost is $3.80 per unit. The actual fixed manufacturing cost is $2,200, and the actual selling and administrative costs are $725. Required a.&b. Determine the flexible budget variances and classify the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Sales Variable manufacturing Contribution margin $ 8.10 per unit $ 3.50 per unit $ 2,600 total $ 700 total Fixed manufacturing Fixed selling and administrative cost Net income (loss) Flexible Budget Variances

Q: Read through the following short case, and then answer the questions that follow. a) What would you…

A: Budget: It is an estimate of various financial items for a defined period, say a year or less.…

Q: Can you explain the problem step by step. I'm having a hard time.

A: The cost function  Y = a+bX a = fixed cost b = variable cost Y = total cost X = the quantum of…

Q: Agree or disagree with Rawls that people do not deserve their natural endowments? How much does the…

A: I do not hold personal opinions, but I can provide an explanation of John Rawls' views on the…

Q: What is Glass-Steagall Act?

A: Glass-Steagall Act splits up the investment and commercial banking segments of an investment bank.

Q: What are the important guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: The Sarbanes-Oxley Act requires the following?

A: Sarbanes-Oxley Act is formulated during 2002 under US federal law. The prime purpose of the act is…

Q: Are these written in your own words?

A: Yes the answer is writtern in own words. Please find a alternate answer below

Q: Which of the following accounts increases with a credit? OA. Common Stock OB.Accounts Receivable…

A: DebitA debit is an accounting entry made on the account's left side. Debits are used in double-entry…

Q: all is wrong, but august...

A: Stock Prices are given and three months simple moving average is required. It is calculated by…

Q: Which famous mathematician is known for his work on "Binomial Theorem"? a) Al-Khwarizmi b) Omar…

A: Sir Isaac Newton is a renowned mathematician well recognized for his contributions to the "Binomial…

Q: Illustrate the Guidelines for Selecting a MARR?

A: It places a base gainfulness prerequisite on the discount rate, or MARR, which a venture or…

Q: Using the ending balances shown in the Partial Adjusted Trial Balance listed below, what is the…

A: The total balance for the account is calculated below, Sales tax payable 50,000 Accounts…

Q: Why was the Sarbanes-Oxley Act developed and enacted?

A: Introduction:- The Sarbanes–Oxley Act of 2002 is a federal law in the United States that sets…

Q: What does the DuPont identity tell us that ROE is affected by?

A: DuPont = Net profit margin*Asset turnover*Equity multiplierNet incomeRevenue*SalesAvg total…

Q: What does furlough mean?

A: Furlough: Furlough is a provisional leave of workers owing to particular requirements of a firm or…

Q: Using the following information, prepare a bank reconciliation.

A: “Since you have posted multiple questions, we will be answering the first question. In order to…

Q: What is the approximate rate of delinquency, and is the rate of delinquency increasing or not?

A:

Q: part b is incorrect. Can you rework it?

A: Here,Quarter Dividend is $1.50Growth Rate is 6.25%Required Return is 9%Quarterly Required Return is…

Variance Analysis

In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance. 

Standard Costing

The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.