Franklin Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative coat $ 8.60 per unit $ 3.70 per unit $2,800 total 700 total Franklin planned to produce and sell 2,900 units. Actual production and sales amounted to 3,100 units. Required a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable (F) or unfavorable (U). 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. cen Req A and B Req D Reg E Determine the sales and variable cost volume variances and dassify the variances as favorable (F) or unfavorable (U). (Select "None" f there is no effect (Le, zero vanance).) Volume Variances Sales Vanable manufacturing 465F ReA and n Req D
Franklin Manufacturing Company established the following standard price and cost data. Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative coat $ 8.60 per unit $ 3.70 per unit $2,800 total 700 total Franklin planned to produce and sell 2,900 units. Actual production and sales amounted to 3,100 units. Required a. Determine the sales and variable cost volume variances. b. Classify the variances as favorable (F) or unfavorable (U). 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. cen Req A and B Req D Reg E Determine the sales and variable cost volume variances and dassify the variances as favorable (F) or unfavorable (U). (Select "None" f there is no effect (Le, zero vanance).) Volume Variances Sales Vanable manufacturing 465F ReA and n Req D
Chapter1: Financial Statements And Business Decisions
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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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Transcribed Image Text:Franklin Manufacturing Company established the following standard price and cost data.
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative coat
$ 8.60 per unit
$ 3.70 per unit
$2,800 total
700 total
Franklin planned to produce and sell 2,900 units. Actual production and sales amounted to 3,100 units.
Required
8. Determine the sales and variable cost volume variances.
b. Classify the varlances as favorable (F) or unfavorable (U).
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.
cen
Req A and B
Req D
Reg E
Determine the sales and variable cost volume varances and cdassify the variances as favorable (F) or unfavorable (U). (Select
"None" f there is no effect (Le., zero vanance).)
Volume Variances
Sales
Vanable manufacturing
465F
ReA and n
Req D
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