Munoz 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. Number of units Manufacturing overhead Selling, general, and administrative Munoz planned to make and sell 31,000 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 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs Master Budget 31,000 $ 0 $36.30 8.90 3.70 6.20 6.70 0 $ $ 126,000 46,000 Flexible Budgets 30,000 0 0 $ 32,000 0 0 Volume Variances
Munoz 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. Number of units Manufacturing overhead Selling, general, and administrative Munoz planned to make and sell 31,000 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 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U). Note: Select "None" if there is no effect (i.e., zero variance). Variable manufacturing costs Fixed costs Master Budget 31,000 $ 0 $36.30 8.90 3.70 6.20 6.70 0 $ $ 126,000 46,000 Flexible Budgets 30,000 0 0 $ 32,000 0 0 Volume Variances
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Munoz 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
Munoz planned to make and sell 31,000 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 30,000 and 32,000 units. Determine the sales and variable cost volume variances, assuming volume
is actually 32,000 units. Indicate whether the variances are favorable (F) or unfavorable (U).
Note: Select "None" if there is no effect (i.e., zero variance).
Number of units
Variable manufacturing costs
Fixed costs
Master Budget
31,000
$
0
$36.30
8.90
3.70
6.20
6.70
0 $
$ 126,000
46,000
Flexible Budgets
30,000
0
0
$
32,000
0
Volume Variances
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