Opal Manufacturing Company established the following standard price and cost information: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 120,000 total $50,000 total Opal expected to produce and sell 29,000 units. Actual production and sales amounted to 32,500 units. Required: a. and b. Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost. Classify the variances as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance). Units $70 per unit 52 per unit Static Budget Flexible Budget Volume Variance Favorable or Unfavorable

Opal Manufacturing Company established the following standard price and cost information: Sales price Variable manufacturing cost Fixed manufacturing cost Fixed selling and administrative cost $ 120,000 total $50,000 total Opal expected to produce and sell 29,000 units. Actual production and sales amounted to 32,500 units. Required: a. and b. Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost, fixed manufacturing cost, and fixed selling and administrative cost. Classify the variances as favorable (F) or unfavorable (U). Note: Indicate the effect of each variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance). Units $70 per unit 52 per unit Static Budget Flexible Budget Volume Variance Favorable or Unfavorable

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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Question

Opal Manufacturing Company established the following standard price and cost information:
Sales price
$70 per unit
52 per unit
Variable manufacturing cost
Fixed manufacturing cost
$ 120,000 total
$50,000 total
Fixed selling and administrative cost
Opal expected to produce and sell 29,000 units. Actual production and sales amounted to 32,500 units.
Required:
a. and b. Determine the sales volume variances, including variances for number of units, sales revenue, variable manufacturing cost,
fixed manufacturing cost, and fixed selling and administrative cost. Classify the variances as favorable (F) or unfavorable (U).
Note: Indicate the effect of each variance by selecting "Favorable", "Unfavorable", and "None" for no effect (i.e., zero variance).
Units
Static Budget
Flexible
Budget
Volume
Variance
Favorable or
Unfavorable

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