Perez 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 Assume that Perez actually produced and sold 38.000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general and administrative costs Contribution margin $36.00 8.50 4.20 6.10 6.30 Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income Flexible Budget Variances $ 126,000 45,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" If there is no effect (I.e., zero variance). $ 35.00 8.70 4.10 6.15 6.10 $ 111,000 51,000

Perez 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 Assume that Perez actually produced and sold 38.000 books. The actual sales price and costs incurred follow: Actual price and variable costs Sales price Materials cost Labor cost Overhead cost Selling, general, and administrative costs Actual fixed costs Manufacturing overhead Selling, general, and administrative Sales revenue Variable manufacturing costs Materials Labor Overhead Selling, general and administrative costs Contribution margin $36.00 8.50 4.20 6.10 6.30 Fixed costs Manufacturing overhead Selling, general, and administrative costs Net income Flexible Budget Variances $ 126,000 45,000 Required a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable (U). Note: Select "None" If there is no effect (I.e., zero variance). $ 35.00 8.70 4.10 6.15 6.10 $ 111,000 51,000

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Description: Perez Publications established the following standard price and costs for a hardcover picture book that the company produces.Standard price and variable costsSales priceMaterials costLabor costOverhead costSelling, general, and administrative costsP

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter5: Process Costing

Section: Chapter Questions

Problem 2PA: The following product costs are available for Arrez Company on the production of DVD cases: direct...

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Concept explainers

Process Costing

Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure. 

Job Costing

Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.

ABC Costing

Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.

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Question

Perez 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
$ 126,000
45,000
Selling, general, and administrative
Assume that Perez actually produced and sold 38,000 books. The actual sales price and costs incurred follow:
Actual price and variable costs
Sales price
Materials cost
Labor cost
Overhead cost
Selling, general, and administrative costs
Actual fixed costs
Manufacturing overhead
Selling, general, and administrative
Sales revenue
Variable manufacturing costs
Materials
Labor
Overhead
Selling, general, and administrative costs
Contribution margin
Required
a. & b. Determine the flexible budget variances and also indicate the effect of each variance by selecting favorable (F) or unfavorable
(U).
Note: Select "None" If there is no effect (l.e., zero varlance).
Fixed costs
$36.00
8.50
4.20
6.10
6.30
Manufacturing overhead
Selling, general, and administrative costs
Net income
Flexible Budget
Variances
$35.00
8.70
4.10
6.15
6.10
$ 111,000
51,000

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