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Finch Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Sales revenue Variable manufacturing costs Labor Manufacturing overhead Variable selling general, and administrative costs $36.50 8.50 4.50 Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Fixed costs 6.10 6.80 $130,000 49,000 Master Budget 24,000 Flexible Budgets 23,000 25,000 Volume Variances

Finch Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Sales revenue Variable manufacturing costs Labor Manufacturing overhead Variable selling general, and administrative costs $36.50 8.50 4.50 Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Fixed costs 6.10 6.80 $130,000 49,000 Master Budget 24,000 Flexible Budgets 23,000 25,000 Volume Variances

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Planned fixed costs. Manufacturing overhead Selling, general, and administrative Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Number of units Sales revenue Variable manufacturing costs Labor Manufacturing overhead. Variable selling general, and administrative costs $130,000 49,000 Fixed costs Master Budget 24,000 $ 0 0 $ Flexible Budgets 23,000 0 0 $ 25,000 Volume Variances +
Transcribed Image Text:Planned fixed costs. Manufacturing overhead Selling, general, and administrative Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e.. zero variance).) Number of units Sales revenue Variable manufacturing costs Labor Manufacturing overhead. Variable selling general, and administrative costs $130,000 49,000 Fixed costs Master Budget 24,000 $ 0 0 $ Flexible Budgets 23,000 0 0 $ 25,000 Volume Variances +
Finch Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Sales revenue Variable manufacturing costs Labor Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Manufacturing overhead Variable selling general, and administrative costs $36.50 8.50 4.50 6.18 6.80 Fixed costs $130,000 49,000 Master Budget 24,000 Flexible Budgets 23,000 25,000 Volume Variances
Transcribed Image Text:Finch Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Planned fixed costs Manufacturing overhead Selling, general, and administrative Number of units Sales revenue Variable manufacturing costs Labor Finch planned to make and sell 24,000 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 23,000 and 25,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 25,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Manufacturing overhead Variable selling general, and administrative costs $36.50 8.50 4.50 6.18 6.80 Fixed costs $130,000 49,000 Master Budget 24,000 Flexible Budgets 23,000 25,000 Volume Variances
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