Munoz Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost. $ 8.20 per unit $ 3.30 per unit $2,300 total $1,000 total Munoz planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.00 per unit and that the actual variable cost is $3.50 per unit. The actual fixed ma cost is $1,700, and the actual selling and administrative costs are $1,025. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Sel there is no effect (i.e., zero variance).) Flexible Budget
Munoz Manufacturing Company established the following standard price and cost data: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost. $ 8.20 per unit $ 3.30 per unit $2,300 total $1,000 total Munoz planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units. Assume that the actual sales price is $8.00 per unit and that the actual variable cost is $3.50 per unit. The actual fixed ma cost is $1,700, and the actual selling and administrative costs are $1,025. Required a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Sel there is no effect (i.e., zero variance).) Flexible Budget
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Munoz Manufacturing Company established the following standard price and cost data:
Sales price
Variable manufacturing cost
Fixed manufacturing cost
Fixed selling and administrative cost
Munoz planned to produce and sell 2,300 units. Actual production and sales amounted to 2,500 units.
Assume that the actual sales price is $8.00 per unit and that the actual variable cost is $3.50 per unit. The actual fixed manufacturing
cost is $1,700, and the actual selling and administrative costs are $1,025.
Required
a.&b. Determine the flexible budget variances and classify the variances by selecting favorable (F) or unfavorable (U). (Select "None" if
there is no effect (i.e., zero variance).)
Sales
Variable manufacturing
Contribution margin
$ 8.20 per unit
$ 3.30 per unit
$2,300 total
$1,000 total
Fixed manufacturing
Fixed selling and administrative cost
Net income (loss)
Flexible Budget
Variances
U
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