Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:Standard price and variable costsSales priceMaterials cost$90.0018.00Labor cost9.00Overhead cost12.60Selling, general, and administrative costsPlanned fixed costs14.40Manufacturing overheadSelling, general, and administrative$270,000108,000Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow.Actual price and variable costsSales price2$87.00Materials cost18.40Labor costOverhead cost8.8012.70Selling, general, and administrative costsActual fixed costs14.00Manufacturing overheadSelling, general, and administrative$250,000116,000Requireda. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable(U). (Select "None" if there is no effect (i.e., zero variance).)Flexible BudgetVariancesSales revenue$ 96,000 UVariable manufacturing costsMaterials12,800 ULabor6,400 FOverhead3,200 USelling, general & administrative12,800 FContribution marginFixed costsManufacturing overhead20,000 FSelling, general & administrative8,000 UNet income

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Description: Narcisco Publications established the following standard price and costs for a hardcover picture book that the company produces:Standard price and variable costsSales priceMaterials cost$90.0018.00Labor cost9.00Overhead cost12.60Selling, general, an

A flexible budget variation is any difference between the outcomes provided by a flexible budget…

Business

Accounting

Narcisco 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 $ 90.00 18.00 Labor cost 9.00 Overhead cost 12.60 Selling, general, and administrative costs Planned fixed costs 14.40 Manufacturing overhead Selling, general, and administrative $270,000 108,000 Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. Actual price and variable costs $ 87.00 Sales price Materials cost 18.40 Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs 8.80 12.70 14.00 Manufacturing overhead Selling, general, and administrative $250,000 116,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Flexible Budget Variances Sales revenue $ 96,000 U Variable manufacturing costs Materials 12,800 U Labor 6,400 F Overhead 3,200 U Selling, general & administrative 12,800 F

Narcisco 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 $ 90.00 18.00 Labor cost 9.00 Overhead cost 12.60 Selling, general, and administrative costs Planned fixed costs 14.40 Manufacturing overhead Selling, general, and administrative $270,000 108,000 Assume that Narcisco actually produced and sold 32,000 books. The actual sales price and costs incurred follow. Actual price and variable costs $ 87.00 Sales price Materials cost 18.40 Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs 8.80 12.70 14.00 Manufacturing overhead Selling, general, and administrative $250,000 116,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). (Select "None" if there is no effect (i.e., zero variance).) Flexible Budget Variances Sales revenue $ 96,000 U Variable manufacturing costs Materials 12,800 U Labor 6,400 F Overhead 3,200 U Selling, general & administrative 12,800 F

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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