Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.60 Materials cost 8.20 Labor cost 4.50 Overhead cost 5.50 Selling, general, and administrative costs 6.70 Planned fixed costs Manufacturing overhead $ 129,000 Selling, general, and administrative 45,000 Assume that Franklin actually produced and sold 33,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.60 Materials cost 8.40 Labor cost 4.40 Overhead cost 5.55 Selling, general, and administrative costs 6.50 Actual fixed costs Manufacturing overhead $ 114,000 Selling, general, and administrative 51,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable
Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces. Standard price and variable costs Sales price $ 36.60 Materials cost 8.20 Labor cost 4.50 Overhead cost 5.50 Selling, general, and administrative costs 6.70 Planned fixed costs Manufacturing overhead $ 129,000 Selling, general, and administrative 45,000 Assume that Franklin actually produced and sold 33,000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price $ 35.60 Materials cost 8.40 Labor cost 4.40 Overhead cost 5.55 Selling, general, and administrative costs 6.50 Actual fixed costs Manufacturing overhead $ 114,000 Selling, general, and administrative 51,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Franklin Publications established the following standard price and costs for a hardcover picture book that the company produces.
| Standard price and variable costs | |||
| Sales price | $ | 36.60 | |
| Materials cost | 8.20 | ||
| Labor cost | 4.50 | ||
| 5.50 | |||
| Selling, general, and administrative costs | 6.70 | ||
| Planned fixed costs | |||
| Manufacturing overhead | $ | 129,000 | |
| Selling, general, and administrative | 45,000 | ||
Assume that Franklin actually produced and sold 33,000 books. The actual sales price and costs incurred follow:
| Actual price and variable costs | |||
| Sales price | $ | 35.60 | |
| Materials cost | 8.40 | ||
| Labor cost | 4.40 | ||
| Overhead cost | 5.55 | ||
| Selling, general, and administrative costs | 6.50 | ||
| Actual fixed costs | |||
| Manufacturing overhead | $ | 114,000 | |
| Selling, general, and administrative | 51,000 | ||
Required
a. & b. Determine the flexible
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