Finch Manufacturing Company established the following standard price and cost data: Sales price $ 8.00 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,900 total $ 700 total Fixed selling and administrative cost Finch planned to produce and sell 2,500 units. Actual production and sales amounted to 2,600 units. Required Determine the sales and variable cost volume variances.
Finch Manufacturing Company established the following standard price and cost data: Sales price $ 8.00 per unit Variable manufacturing cost $ 3.90 per unit Fixed manufacturing cost $ 2,900 total $ 700 total Fixed selling and administrative cost Finch planned to produce and sell 2,500 units. Actual production and sales amounted to 2,600 units. Required Determine the sales and variable cost volume variances.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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.
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a. Determine the sales and variable cost volume variances.
Transcribed Image Text:Finch Manufacturing Company established the following standard price and cost data:
Sales price
$ 8.00 per unit
Variable manufacturing cost
$ 3.90 per unit
Fixed manufacturing cost
$ 2,900 total
$ 700 total
Fixed selling and administrative cost
Finch planned to produce and sell 2,500 units. Actual production and sales amounted to 2,600 units.
Required
a. Determine the sales and variable cost volume variances.
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