Franklin Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost $8.60 per unit $ 3.90 per unit $2,700 total $ 700 total Fixed manufacturing cost Fixed selling and administrative cost Franklin planned to produce and sell 2,300 units. Actual production and sales amounted to 2,400 units. Required a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable or unfavorable. d. Determine the amount of fixed cost that will appear in the flexible budget. e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity. Complete this question by entering your answers in the tabs below. Req A and B Reg D Reg E a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Volume Variances Sales Variable manufacturing

Franklin Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost $8.60 per unit $ 3.90 per unit $2,700 total $ 700 total Fixed manufacturing cost Fixed selling and administrative cost Franklin planned to produce and sell 2,300 units. Actual production and sales amounted to 2,400 units. Required a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable or unfavorable. d. Determine the amount of fixed cost that will appear in the flexible budget. e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity. Complete this question by entering your answers in the tabs below. Req A and B Reg D Reg E a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable or unfavorable. Note: Select "None" if there is no effect (i.e., zero variance). Volume Variances Sales Variable manufacturing

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Description: Franklin Manufacturing Company established the following standard price and cost data:Sales price$ 8.60 per unitVariable manufacturing cost$ 3.90 per unitFixed manufacturing costFixed selling and administrative costFranklin planned to produce and se

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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Concept explainers

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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Question

Franklin Manufacturing Company established the following standard price and cost data:
Sales price
$ 8.60 per unit
Variable manufacturing cost
$ 3.90 per unit
Fixed manufacturing cost
Fixed selling and administrative cost
Franklin planned to produce and sell 2,300 units. Actual production and sales amounted to 2,400 units.
Required
a. Determine the sales and variable cost volume variances.
b. Classify the variances as favorable or unfavorable,
d. Determine the amount of fixed cost that will appear in the flexible budget.
e. Determine the fixed cost per unit based on planned activity and the fixed cost per unit based on actual activity.
Complete this question by entering your answers in the tabs below.
$ 2,700 total
$ 700 total
Req A and B
Reg D
a. Determine the sales and variable cost volume variances.
b. Classify the variances as favorable or unfavorable.
Note: Select "None" if there is no effect (i.e., zero variance).
Sales
Variable manufacturing
Reg E
Volume Variances

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