Fanning Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost $ 9.00 per unit $ 3.30 per unit Fixed manufacturing cost $ 2,100 total $ 800 total Fixed selling and administrative cost Fanning planned to produce and sell 2,900 units. Actual production and sales amounted to 3,200 units. Assume that the actual sales price is $8.60 per unit and that the actual variable cost is $3.50 per unit. The actual fixed manufacturing cost is $1,600, and the actual selling and administrative costs are $840. 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).
Fanning Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost $ 9.00 per unit $ 3.30 per unit Fixed manufacturing cost $ 2,100 total $ 800 total Fixed selling and administrative cost Fanning planned to produce and sell 2,900 units. Actual production and sales amounted to 3,200 units. Assume that the actual sales price is $8.60 per unit and that the actual variable cost is $3.50 per unit. The actual fixed manufacturing cost is $1,600, and the actual selling and administrative costs are $840. 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).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Please don't provide answer in image format thank you.
Transcribed Image Text:Fanning Manufacturing Company established the following standard price and cost data:
$ 9.00 per unit
$3.30 per unit
$2,100 total
$800 total
Fanning planned to produce and sell 2,900 units. Actual production and sales amounted to 3,200 units.
Assume that the actual sales price is $8.60 per unit and that the actual variable cost is $3.50 per unit. The actual fixed manufacturing
cost is $1,600, and the actual selling and administrative costs are $840.
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative cost
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
Fixed manufacturing
Fixed selling and administrative cost
Net income (loss)
Flexible Budget
Variances
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps with 2 images
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education